Mutual Funds

Invesco Long/Short Equity Fund

Alternatives | Long/Short Equity

Objective & Strategy

The fund seeks long term capital appreciation.

High conviction strategy with the potential to complement a traditional equity allocation

Invesco takes a balanced investment approach where each holding is selected not only for its return potential, but also for its contribution to portfolio risk.

Return pattern may complement traditional equities

The strategy invests in long and short positions in stocks.1 Individual positions, sector and industry weights are the outcome of return and risk forecasts rather than market capitalization. The net long and beta2 exposures are adjusted according to the risk forecasts in an effort to participate in up markets and decline less in more challenging environments. This strategy creates the potential for attractive returns with lower market volatility, which may result in better compounded returns for investors over the long-term.

Fund earnings have complimented the index while outperforming peers over time
Hypothetical growth of $10,000 investment

Fund earnings have complimented the index while outperforming peers over time

Source: StyleADVISOR for the period Dec. 31, 2013 to July 31, 2016. Results do not include sales charges, which would have reduced the performance. Fund inception: December 19, 2013. An investment cannot be made directly in an index. Past performance is not indicative of future results.

1 A long position in a security, such as a stock or a bond, means the holder of the position will profit if the price of the security goes up. In contrast, short selling is a trading strategy that seeks to capitalize on an anticipated decline in the price of a security by borrowing shares of the security, selling immediately and later repurchasing the shares at a lower price to make a profit. Short sales may cause the fund to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, the fund's exposure is unlimited.

2 Beta is a measure of the volatility, or risk, of a portfolio in comparison to the market as a whole.

Invesco takes a balanced investment approach where each holding is selected not only for its return potential, but also for its contribution to portfolio risk

The strategy is net long biased, but the level will adjust in response to return potential and forecasted risk. The short exposure is held for not only hedging downside risk, but also for seeking total return.

Long/Short Equity portfolio construction

Long/Short Equity portfolio construction is key

For illustrative purposes only.

The portfolio's risk profile is constructed to navigate varying risk environments

The strategy has the ability to add or decrease long exposure and beta in response to changes in forecasted market risk. As forecasted market risk increases (decreases), the net equity exposure declines (increases). Since periods of high market volatility are typically accompanied by steep equity declines, a lower level of net equity exposure may help reduce the impact from those market sell-offs.

When market volatility rises, portfolio positions are adjusted in an effort to minimize risk

When market volatility rises, portfolio positions are adjusted to minimize risk

Source: Invesco Quantitative Strategies' and CBOE. Shown is the monthly positioning of the fund at rebalance since inception. The beta of the strategy and VIX (market volatility of S&P index options) is measured monthly at the strategy rebalance. Beta is a measure of the volatility, or risk, of a portfolio in comparison to the market as a whole. There can be no assurance the fund will provide lower market sensitivity. Past performance cannot guarantee future results. An investment cannot be made in an index. Current portfolio holdings may differ. VIX is a trademarked ticker symbol for the CBOE Volatility Index, a popular measure of the implied volatility of S&P 500 Index options. The VIX represents one measure of the market's expectation of stock market volatility over the next 30-day period. Data as of June 30, 2016.

as of 08/31/2016

Morningstar Rating

Overall Rating - Long-Short Equity Category

As of 08/31/2016 the Fund had an overall rating of N/A stars out of N/A funds and was rated N/A stars out of N/A funds, N/A stars out of N/A funds and N/A stars out of N/A funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable. ©2016 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. A fund is eligible for a Morningstar Rating three years after inception. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics.

Management team

as of 08/31/2016

Top Equity Holdings | View all

  % of Total net assets
EBAY INC 2.03
INGREDION INC 2.01
HD SUPPLY HOLDINGS INC 2.01
BIOGEN INC 2.00
NVIDIA CORP 1.99
QUANTA SVCS INC 1.95
URBAN OUTFITTERS INC 1.95
QUALCOMM INC 1.93
TEXAS INSTRUMENTS INC 1.92
UNUM GROUP 1.92

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

as of 08/31/2016 06/30/2016

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 12/19/2013 N/A 4.10 -3.03 5.92 N/A N/A N/A
Load 12/19/2013 5.50 1.95 -8.34 0.11 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 08/31/2016 06/30/2016

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Citigroup 90-Day Treasury Bill Index 0.02 0.07 0.18 0.08 0.07 0.88
S&P 500 Reinvested IX 0.14 4.10 12.55 12.30 14.69 7.51
Citigroup 90-Day Treasury Bill Index 0.02 0.06 0.14 0.07 0.06 0.96
S&P 500 Reinvested IX 0.26 2.46 3.99 11.66 12.10 7.42

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 1.26
Interest/Dividend Exp 0.00
Total Other Expenses 1.26
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.02
Total Annual Fund Operating Expenses 2.78
Contractual Waivers/Reimbursements -0.91
Net Expenses - PER PROSPECTUS 1.87
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.87
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 0.5532 N/A 0.0565 10.86
12/12/2014 N/A N/A 0.0029 10.98
as of 08/31/2016

Fund Characteristics

3-Year Alpha N/A
3-Year Beta N/A
3-Year R-Squared N/A
Number of Securities 248
Total Assets $69,748,619.00
Wghtd Med Mkt Cap MM$ $8,356.00

Source: FactSet Research Systems Inc., StyleADVISOR

as of 08/31/2016

Top Equity Holdings | View all

  % of Total net assets
EBAY INC 2.03
INGREDION INC 2.01
HD SUPPLY HOLDINGS INC 2.01
BIOGEN INC 2.00
NVIDIA CORP 1.99
QUANTA SVCS INC 1.95
URBAN OUTFITTERS INC 1.95
QUALCOMM INC 1.93
TEXAS INSTRUMENTS INC 1.92
UNUM GROUP 1.92

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

as of 08/31/2016

Portfolio Composition

  % of Total net assets
Percentage of Net Asset (Long) 193.31
Percentage of Net Asset (Short) 100.00
Gross Exposure (Long + Short) 293.31
Net Exposure (Long - Short) 93.31

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 08/31/2016

Top 5 Long Positions

  % of Total net assets
EBAY INC 2.03
INGREDION INC 2.01
HD SUPPLY HOLDINGS INC 2.01
BIOGEN INC 2.00
NVIDIA CORP 1.99

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

as of 08/31/2016

Top 5 Short Positions

  % of Total net assets
CF INDUSTRIES HOLDINGS INC -1.64
TWITTER INC -1.59
STERICYCLE INC -1.55
XL GROUP LTD COM -1.55
S&C TECHNOLOGIES HLDGS INC -1.54

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

as of 08/31/2016

Equity Sector Breakdown

  % of Total net assets
Sector Long weight (%) Short weight (%)
Consumer Discretionary 24.06 -25.97
Consumer Staples 14.02 -1.44
Energy 14.27 -13.40
Financials 29.53 -15.39
Health Care 20.14 -12.94
Industrials 28.00 -7.98
Information Technology 45.78 -16.39
Materials 8.78 -7.60
Telecommunications 4.80 0.00
Utilities 4.54 0.00

 About risk

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 strategies.

Management Risk. The Fund is actively managed and depends heavily on the Adviser's judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund's portfolio. The Fund could experience losses if these judgments prove to be incorrect. There is no guarantee that the Fund's mixture of long and short positions or the portfolio manager's stock selection process will produce a portfolio with reduced exposure to stock market risk. In addition, the Fund's long/short investment strategy may cause the Fund to underperform the broader equity markets in which the Fund invests during market rallies. Such underperformance could be significant during sudden or significant market rallies. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.

Market Risk. The market values of the Fund's investments, and therefore the value of the Fund's shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.

Sector Focus Risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund's performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries.

Short Position Risk. Because the Fund's potential loss on a short position arises from increases in the value of the asset sold short, the Fund will incur a loss on a short position, which is theoretically unlimited, if the price of the asset sold short increases from the short sale price. The counterparty to a short position or other market factors may prevent the Fund from closing out a short position at a desirable time or price and may reduce or eliminate any gain or result in a loss. In a rising market, the Fund's short positions will cause the Fund to underperform the overall market and its peers that do not engage in shorting. If the Fund holds both long and short positions, and both positions decline simultaneously, the short positions will not provide any buffer (hedge) from declines in value of the Fund's long positions. Certain types of short positions involve leverage, which may exaggerate any losses, potentially more than the actual cost of the investment, and will increase the volatility of the Fund's returns.

Small- and Mid-Capitalization Companies Risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies' securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market.

as of 09/29/2016

LSQAX

NAV Change ($)
$10.39 0.00
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 LSQAX
  • WSJ Abrev. N/A
  • CUSIP 00888Y334
  • Fund Type Alternative
  • Geography Type Domestic
  • Inception Date 12/19/2013
  • Fiscal Year End 10/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1652
  • Tax ID 46-3865341