Mutual Funds

Invesco All Cap Market Neutral Fund

Alternatives | Equity Market Neutral

Objective & Strategy

The fund seeks to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.

Performance driven

The fund attempts to add value by capturing the performance spread between its long and short holdings. In order to identify likely long and short candidates for the fund, the investment team uses its proprietary Stock Selection Model which has a real-time track record of 30 years.

Potential for positive returns whether the stock market is up, down or sideways

Market neutral equity strategy returns are not dependent on the direction of the market. Rather, the key return driver for market neutral equity strategies is the spread earned between the long and short holdings. If, on balance, the portfolio manager can correctly identify industry winners and losers relative to each other, then a market neutral equity strategy will deliver a positive return regardless of market direction.

Market neutral strategy returns are not entirely dependent on market direction

Source: Invesco. For illustrative purposes only. Long/Short Spread represents the return an investor would earn.

May help to protect wealth during market sell-offs

Because market neutral strategies typically seek lower volatility than the market, a big drop in equity markets should not influence the strategy’s performance. This contrasts sharply with traditional, benchmark-centric strategies, which typically have very high levels of market exposure and tend to vary similarly to the broader market.

Market neutral strategies held their own during distressed market periods

Sources: Invesco and StyleADVISOR. January 1997 – November 2015. BarclayHedge Alternative Investment Database. The S&P 500 Index is an unmanaged index considered representative of the U.S. stock market. BarclayHedge Equity Market Neutral Index includes hedge funds that attempt to exploit equity market inefficiencies and usually involves being simultaneously long- and short-matched equity portfolios of the same size within a country. BarclayHedge indexes reflect performance of hedge funds, not of retail investment strategies, and are used for illustrative purposes only solely as  points of reference in evaluating alternative investment strategies. Hedge funds are typically aggressively managed portfolios of investments for high net worth investors that use advanced investment strategies such as leverage, long, short and derivative positions with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). Hedge fund managers have less restriction on their investment methodologies than mutual fund managers, and hedge funds are less regulated and therefore offer less investor protection than mutual funds. Mutual funds are more transparent with regard to disclosure of underlying holdings and have lower fees than hedge funds. The Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. Past performance is not a guarantee of future results. An investment cannot be made directly into an index.

Market volatility can erode a portfolio's value

Since market neutral returns are expected to be independent of the broader equity market, a spike in market-level volatility may not necessarily mean a spike in market neutral volatility.

Market neutral strategies held their own during distressed market periods

Sources: Invesco and StyleADVISOR. (January 1997 – November 2015). Market volatility and risk measured by standard deviation. Standard deviation measures a fund’s range of total returns and identifies the spread of a fund’s short-term fluctuations. BarclayHedge Alternative Investment Database. The S&P 500 Index is an unmanaged index considered representative of the U.S. stock market. BarclayHedge Equity Market Neutral Index includes hedge funds that attempt to exploit equity market inefficiencies and usually involves being simultaneously long- and short-matched equity portfolios of the same size within a country. BarclayHedge indexes reflect performance of hedge funds, not of retail investment strategies, and are used for illustrative purposes only solely as  points of reference in evaluating alternative investment strategies. Hedge funds are typically aggressively managed portfolios of investments for high net worth investors that use advanced investment strategies such as leverage, long, short and derivative positions with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). Hedge fund managers have less restriction on their investment methodologies than mutual fund managers, and hedge funds are less regulated and therefore offer less investor protection than mutual funds. Mutual funds are more transparent with regard to disclosure of underlying holdings and have lower fees than hedge funds. The Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. Past performance is not a guarantee of future results. An investment cannot be made directly into an index. Diversification does not guarantee a profit or eliminate the risk of loss.

Management team

as of 12/31/2015

Top Equity Holdings | View All

  % of Total Net Assets
FREEPORT-MCMORAN INC -1.48%
EQT CORP -1.46%
NVIDIA CORP 1.45%
UNITED THERAPEUTICS CORP 1.44%
LEIDOS HOLDINGS INC 1.44%
AKORN INC -1.42%
BARRICK GOLD CORP 1.42%
NEWMONT MINING CORP HLDG CO 1.41%
ILLUMINA INC -1.40%
INTEGRATED DEVICE TECH INC 1.40%

Holdings are subject to change and are not buy/sell recommendations.

as of 01/31/2016 12/31/2015

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 12/17/2013 N/A 9.18 3.88 9.54 N/A N/A N/A
Load 12/17/2013 5.50 6.31 -1.83 3.51 N/A N/A N/A
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.

Performance shown at NAV does not include applicable front-end or CDSC sales charges, which would have reduced the performance.

Performance figures reflect reinvested distributions and changes in net asset value (NAV) and the effect of the maximum sales charge unless otherwise stated.

as of 01/31/2016 12/31/2015

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Citigroup 90-Day Treasury Bill 0.01 0.02 0.04 0.04 0.05 1.14
Citigroup 90-Day Treasury Bill 0.01 0.02 0.04 0.04 0.05 1.14
Citigroup 90-Day Treasury Bill 0.01 0.01 0.03 0.04 0.05 1.17
Citigroup 90-Day Treasury Bill 0.01 0.01 0.03 0.04 0.05 1.17

Source: FactSet Research Systems Inc.

Source: FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 1.25
12b-1 Fee 0.25
Other Expenses 2.85
Interest/Dividend Exp 0.00
Total Other Expenses 2.85
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.02
Total Annual Fund Operating Expenses 4.37
Contractual Waivers/Reimbursements -2.75
Net Expenses - PER PROSPECTUS 1.62
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.62
This information is updated per the most recent prospectus.

Historical Prices

From   to
No history records found for this date range

Distributions

From   to
    Capital Gains Reinvestment
Price ($)
Ex-Date Income Short Term Long Term
12/11/2015 1.3326 N/A N/A 10.57
as of 01/31/2016

Fund Characteristics

3-Year Alpha N/A
3-Year Beta N/A
3-Year R-Squared N/A
Number of Securities 146
Total Assets $76,464,907.00
Wghtd Med Mkt Cap MM$ $2,332.00

Source: FactSet Research Systems Inc., StyleADVISOR

as of 12/31/2015

Top Equity Holdings | View All

  % of Total Net Assets
FREEPORT-MCMORAN INC -1.48%
EQT CORP -1.46%
NVIDIA CORP 1.45%
UNITED THERAPEUTICS CORP 1.44%
LEIDOS HOLDINGS INC 1.44%
AKORN INC -1.42%
BARRICK GOLD CORP 1.42%
NEWMONT MINING CORP HLDG CO 1.41%
ILLUMINA INC -1.40%
INTEGRATED DEVICE TECH INC 1.40%

Holdings are subject to change and are not buy/sell recommendations.

as of 12/31/2015

Portfolio Composition

  % of Total Net Assets
Percentage of Net Asset (Long) 90.00
Percentage of Net Asset (Short) 90.00
Gross Exposure (Long + Short) 180.00
Net Exposure (Long - Short) 0.00

Gross Exposure represents the absolute exposure of the fund to long and short holdings combined.
Net Exposure represents the difference between long and short holdings exposure for the fund.

as of 12/31/2015

Top 5 Long Positions

  % of Total Net Assets
NVIDIA CORP 1.45
UNITED THERAPEUTICS CORP 1.44
LEIDOS HOLDINGS INC 1.44
BARRICK GOLD CORP 1.42
NEWMONT MINING CORP HLDG CO 1.41

Holdings are subject to change and are not buy/sell recommendations

as of 12/31/2015

Top 5 Short Positions

  % of Total Net Assets
FREEPORT-MCMORAN INC -1.48
EQT CORP -1.46
AKORN INC -1.42
ILLUMINA INC -1.40
PLATFORM SPECIALTY PRODUCTS COM -1.39

Holdings are subject to change and are not buy/sell recommendations

as of 12/31/2015

Equity Sector Breakdown

  % of Total Net Assets
Sector Long Weight (%) Short Weight (%)
Consumer Discretionary 8.87 -10.10
Consumer Staples 2.60 -1.93
Energy 13.72 -14.12
Financials 7.90 -9.68
Health Care 24.55 -24.20
Industrials 6.32 -4.33
Information Technology 18.35 -17.41
Materials 6.77 -7.80
Telecommunications 0.33 -0.85
Utilities 0.09 -0.77

 About risk

Active Trading Risk. The Fund engages in frequent trading of portfolio securities. Active trading results in added expenses and may result in a lower return and increased tax liability.

Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund's returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund's ability to use certain derivatives or their cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. These risks are greater for the Fund than mutual funds that do not use derivative instruments or that use derivative instruments to a lesser extent than the Fund to implement their investment strategy.

Management Risk. The investment techniques and risk analysis used by the Fund's portfolio managers may not produce the desired results. In particular, there is no guarantee that the portfolio manager's stock selection process will produce a market neutral portfolio that reduces or eliminates the Fund's exposure to general U.S. stock market risk, sector or industry-specific risk or market capitalization risk. In addition, the Fund's market neutral investment strategy will likely cause the Fund to underperform the broader U.S. equity market during market rallies. Such underperformance could be significant during sudden or significant market rallies. Although the Fund seeks to provide a positive return, investors maylose money by investing in the Fund.

Market Risk. The prices of and the income generated by the Fund's securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations.

Short Sales Risk. Short sales may cause the Fund to repurchase a security at a higher price, thereby causing the Fund to incur a loss. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund's exposure is unlimited. In order to establish a short position in a security, the Fund must borrow the security from a broker. The Fund may not always be able to borrow a security the Fund seeks to sell short at a particular time or at an acceptable price. The Fund also may not always be able to close out the short position by replacing the borrowed securities at a particular time or at an acceptable price. The Fund will incur increased transaction costs associated with selling securities short. In addition, taking short positions in securities results in a form of leverage which may cause the Fund to be volatile.

Small- and Mid-Capitalization Risks. Stocks of small- and mid-sized companies tend to be more vulnerable to adverse developments and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small- and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.

as of 02/12/2016

CPNAX

NAV Change ($)
$10.78 -0.01
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.

Fund Details

  • Distribution Frequency Annually
  • NASDAQ CPNAX
  • WSJ Abrev. N/A
  • CUSIP 00888Y391
  • Fund Type Alternative
  • Geography Type Domestic
  • Inception Date 12/17/2013
  • Fiscal Year End 10/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1651
  • Tax ID 46-3860607