Unit Trusts


Rediscover Unit Trusts - Equity Sales Charge Update Public Flyer


Invesco Unit Trusts have deposited over 9,000 equity and fixed income portfolios with over $146 billion in initial deposits and more than $22 billion in income paid out to unitholders since 1976.2

At Invesco we believe in continuously striving for a superior client experience by delivering innovative and enduring quality investments designed to meet investors’ evolving needs. To that end, our short-term equity trusts deposited on or after June 9, will be done so at the new sales charge schedule noted below.

Invesco UITs provide you with high-conviction fundamental and factor-based investment strategies in a cost-conscious design. There are many potential advantages to including UITs in your portfolio, including the fixed maturity, buy and hold process providing enhanced certainty of portfolio holdings and holding period.

Updated Equity Sales Charge features


For illustrative purposes only.


Current vs. New Sales Charge structure

Current product structures New product structures
Target maturity Sales charge Dealer concession Sales charge Dealer concession
14- and 15- month 2.95% Total
1.00% Up-front
1.45% Deffered
0.50% C&D free
1.00% Discount for rollovers
2.25% New money
1.30% Rollovers
1.85% Total1
1.35% Deferred
0.50% C&D fee
1.85% applies to rollovers and new money
1.25%
24 month 3.95% Total
1.00% Up-front
2.45% Deffered
0.50% C&D free
1.00% Discount for rollovers
3.15% New money
2.15% Rollovers
2.75% Total1
2.25% Deferred
0.50% C&D fee
2.75% applies to rollovers and new money
2.00%

1 The new sales charge structures are as of 6/9/17. Based on a $10 per unit price. In the new sales charge structure, the deferred sales charge and the creation and development fee are fixed dollar amounts per $10 unit and comprise the maximum sales charge on the initial date of deposit. With this in mind, the deferred sales charge and creation and development fee will vary as a percentage with changes in the public offering price and when the public offering price is greater than $10, the sales charge will include an upfront component. Sales charges will not exceed the total sales charges shown above. Investors in fee accounts will only be charged the C&D Fee.

2 As of Mar. 31, 2017 through Invesco Unit Investment Trusts and predecessor firms.

About risk

There is no assurance that a series of the trust will achieve its investment objective. An investment in any series of this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by a trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in this trust. The trust should be considered as a part of a long-term investment strategy and you should consider your ability to pursue it by investing in successive trusts, if available. You will realize tax consequences associated with investing from one series to the next.

Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust, investors should ask their advisor(s) for a prospectus or download one at invesco.com/uit.

Invesco unit investment trusts are distributed by the Sponsor, Invesco Capital Markets, Inc. and broker dealers including Invesco Distributors, Inc. Both firms are wholly owned, indirect subsidiaries of Invesco Ltd.

Infrastructure investing: From concrete to computer chips

Infrastructure investing: From concrete to computer chips

Learn why Invesco Unit Trusts views information technology as a critical part of the infrastructure category.

By Nick Clare, Associate Portfolio Manager, Invesco Unit Trusts

Make American infrastructure great again!

As we begin a New Year, with a new President, investors may be reevaluating certain portfolio positions in an effort to capitalize on changes to come. Although presidential races can be laced with exaggeration and sometimes even unrealistic promises, investors can often still find investment opportunity in the core ideas and concepts of a future leader. In the case of President Donald Trump, there were often four consistent core concepts he campaigned around: Fiscal easing, deregulation, trade and infrastructure spending. With a purported spending plan in excess of $1 trillion dollars, it is infrastructure that we want to focus on today. Industrials and Materials are commonly considered categories tied to infrastructure but are these two the only market segments to benefit from potential increased spending?

Invesco Unit Trusts believes in expanding the definition of infrastructure beyond the three traditional categories: transportation, telecommunication and energy to include information technology. Technology, such as software, cyber security technology and cloud based applications have become as important to the operation of a global economy as the actual structures they reside in. For example, which is more important to the cell tower, the steel frame or the communication chips inside of it? When looking at infrastructure capital expenditures the answer to this question has become increasingly clear as IT spending has garnered a larger portion of allocated funding. In recent past, infrastructure budgets have been limited, which has led to a reliance on technology to extend the lifespan of existing investments, improve efficiency and boost return on investment of existing infrastructure. Although the present opportunity resides in traditional infrastructure investments, Invesco Unit Trusts believes a modern approach to this theme may complement traditional categories while, supplying additional diversification to the theme.

Building to keep America at the forefront of innovation

Building to keep America at the forefront of innovation

For illustrative purposes only. Please refer to the applicable prospectus for the corresponding breakdown.

Ready to learn more? Contact your Invesco representative or financial advisor for more on how Invesco's American Infrastructure Growth Portfolio may help with your income needs.

Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust, investors should ask their advisor(s) for a prospectus or download one at invesco.com/uit.

About risk

There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust's life except in limited circumstances. Accordingly, you can lose money investing in this trust. The trust should be considered as part of a long-term investment strategy and you should consider your ability to pursue it by investing in successive trusts, if available. You will realize tax consequences associated with investing from one series to the next.

Security prices will fluctuate. The value of an investment may fall over time.

A security issuer may be unwilling or unable to declare dividends or make other distributions in the future, or may reduce the level of dividends declared. This may reduce the level of distributions certain of the Portfolio's securities pay which would reduce your income and may cause the value of the Units to fall.

You could experience dilution of your investment if the size of the Portfolio is increased as Units are sold. There is no assurance that your investment will maintain its proportionate share in the Portfolio's profits and losses.

The Portfolio invests in MLPs. Most MLPs operate in the energy sector and are subject to the risks generally applicable to companies in that sector, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. MLPs are also subject the risk that regulatory or legislative changes could eliminate the tax benefits enjoyed by MLPs which could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the Portfolio's investments.

The trust is concentrated in the information technology sector. There are certain risks specific to the information technology sector such as rapid product obsolescence, volatile stock prices and speculative trading.

Value, blend and growth are types of investment styles. Growth investing generally seeks stocks that offer the potential for greater than-average earnings growth, and may entail greater risk than value or blend investing. Value investing generally seeks stocks that may be sound investments but are temporarily out of favor in the marketplace, and may entail less risk than growth investing. A blend investment combines the two styles.

Trust objective: The portfolio seeks to provide above-average total return.The portfolio seeks to achieve its objective by investing in a portfolio of stocks and other equity securities of companies in industries that may benefit from increased levels of infrastructure investment in the United States. Invesco Capital Markets, Inc., the Sponsor, seeks to identify companies that are involved in America's movement towards energy independence, technology and communication growth, renewable energy and utility service modernization. The Sponsor believes that certain industries may have the potential to benefit from increased spending on infrastructure repair and growth in America, including the construction, engineering, utilities, renewable energy, energy pipeline and transportation, railroad, technology and telecommunication infrastructure industries.

Preferred Opportunity

Compared with the top income tax rate of 43.4%, QDI is taxed at just 23.8% for those in the top tax bracket and 18.8% for investors in most lower brackets.

The preferred opportunity

On top of the potentially attractive yields for preferred securities, they may also allow investors to keep more of what they earn. Preferreds generally pay qualified dividend income (QDI)1, which is taxed at a lower rate than ordinary income. Compared with the top income tax rate of 43.4%, QDI is taxed at just 23.8% for those in the top tax bracket and 18.8% for investors in most lower brackets.

Preferred securities are a potential high income alternative to investment grade and high yield bonds.2 Tax-advantaged income helps you potentially keep more of what you earn. In a rising interest rate environment, you may want to focus on income and spreads. Within credit sensitive fixed income securities, preferred securities are offering an attractive yield when comparing the yield spreads between investment-grade preferred securities and high-yield bonds.

For investors interested in a potentially high income and tax-advantaged investment, Invesco Unit Trust's Preferred Opportunity Portfolio (PFOP) is a duration sensitive approach with a portfolio that seeks to take advantage of the current spread advantage and fixed-to-float nature offered by preferreds.

Many preferred securities offer tax-advantaged income, potentially resulting in higher after-tax yields than municipal bonds3

Source: Cohen & Steers, BofA Merrill Lynch as of June 30, 2016. Past performance is no guarantee of future results. The information presented above does not reflect the performance of any trust. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Notes: Yields shown on a yield-to-maturity basis. The risks of loss attributable to bonds is generally less than that associated with owning preferred securities. (a) For individuals with income less than $400K, qualified dividend income is taxed at 18.8% and the marginal tax rate used was 38.8%. Both rates include the Medicare surcharge of 3.8%. (b) For individuals with income exceeding $400K, qualified dividend income is taxed at 23.8% and the marginal tax rate used was 43.4%. Both rates include the Medicare surcharge of 3.8%. (c) BofA Merrill Lynch Fixed Rate Preferred Securities Index (Credit quality: BBB) tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. (d) BofA Merrill Lynch Municipal Master Index (Credit quality: AA-) tracks the performance of U.S. dollar-denominated investment-grade tax-exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. Note: State and local taxes are not included in these calculations. You should consult your tax professional concerning federal, state and local tax consequences of investing in a particular series.

Ready to learn more? Contact your Invesco representative or financial advisor for more on how Invesco's Preferred Opportunity Portfolio may help with your income needs.

1 The Sponsor seeks to allocate a significant portion of the portfolio in preferred securities whose distributions are taxed as qualified dividend income (QDI). Approximately 80% or more of the portfolio of each PFOP trust deposited since May 2014 has been invested in preferred securities whose distributions are taxed as QDI.

2 Between 20–30% of the portfolio of each PFOP trust deposited since May 2014 has been invested in preferred securities rated below investment grade, otherwise known as "junk" securities. Please refer to a PFOP prospectus for a full discussion regarding the risks related to investments in "junk" rated securities.

3 The underlying risks of owning fixed rate instruments, such as bonds and treasuries, are substantially different than those of owning preferred securities (see "About risk"), however, the yield comparison on the previous page serves to demonstrate the potential for preferred securities to outperform bonds and treasuries. In viewing this comparison, investors should note that preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure in terms of priority to corporate income and therefore are subject to greater risk than those debt instruments.

Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust, investors should ask their advisor(s) for a prospectus or download one at invesco.com/uit.

About risk

There is no assurance that the Portfolio will achieve its investment objective. The Portfolio is subject to market risk, which is the possibility that the market values of securities owned by the Portfolio will decline and that the value of Portfolio units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust's life except in limited circumstances. Accordingly, you can lose money investing in the Portfolio. The trust should be considered as part of a long-term investment strategy and you should consider your ability to pursue it by investing in successive trusts, if available. You will realize tax consequences associated with investing from one series to the next.

Investors could experience dilution of their investment if the size of the portfolio is increased as Units are sold. There is no assurance that your clients' investment will maintain its proportionate share in the portfolio's profits and losses.

An investment in the trust should be made with an understanding of the risks associated with an investment in a portfolio of preferred securities, such as the inability of the issuer to pay the principal of or income on a security when due, volatile interest rates, early call provisions and changes to the tax status of the securities.

The portfolio invests exclusively in preferred securities, including hybrid and trust preferred securities. Hybrid-preferred securities are preferred securities typically issued by corporations, generally in the form of interest-bearing notes or preferred securities and may be perpetual in duration or may have a stated maturity. Trust preferred securities are similar to hybrid securities, but are typically issued by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. Preferred securities do not generally have the growth potential of common stocks. They are also sensitive to interest rate changes and the market price generally falls with rising interest rates. In addition, they are more likely to be called for redemption in a declining interest rate environment. In the event of an issuer's bankruptcy, preferred securities will not be repaid until the issuer's other debt securities, which have priority, have been satisfied. Income payments on most preferreds are non-cumulative and can be deferred indefinitely; distributions on certain hybrid-trust preferreds may generally be deferred without default, although such payments will continue to accrue until paid.

The trust is concentrated in banks and other companies in the financial services industry and may present more risk than a more diversified investment. There are certain risks specific to the financial services sector, including the potential adverse effects of economic recession, volatile interest rates, and state and federal regulations.

Securities of foreign companies held by the funds in the portfolio present risks beyond those of U.S. issuers. These risks may include company's foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign currencies.

The portfolio will receive early returns of principal if securities are called or sold before the portfolio termination. If this happens your portfolio income will decline and you may not be able to reinvest the money you receive at as high a yield. In addition, the value of your units may decline if any portfolio securities trading at a premium are called at par.

Certain preferred securities in the portfolio are rated below investment grade and considered to be "junk" securities. Securities fated below "BBB-" by Standard and Poor's or below "Baa3" by Moody's are considered to be below investment grade. These securities are considered to be speculative and are subject to greater market and credit risks. Accordingly, the risk of default is higher than with investment grade securities. In addition, these securities may be more sensitive to interest rate changes and may be more likely to make early returns of principal.

Opinions and forecasts expressed by Cohen & Steers Capital Management Inc. (Cohen & SteersSM) are not necessarily those of Invesco, and may not actually come to pass. Cohen & Steers is the property of Cohen & Steers Capital Management Inc., which is not affiliated with Invesco. Cohen & Steers is being paid a license fee for the use of certain service marks and is also being compensated for portfolio consultant services.

Trust objective: The portfolio seeks an attractive level of current income by investing in a portfolio primarily consisting of preferred securities. Cohen & Steers, is the Portfolio Consultant. The Sponsor selected the final portfolio based upon the recommendations provided by the Portfolio Consultant.

Invesco unit investment trusts are distributed by the sponsor, Invesco Capital Markets, Inc. and broker dealers including Invesco Distributors, Inc. Both firms are indirect, wholly owned subsidiaries of Invesco Ltd.