Profile Fact Card
Profile Fact Card
Drivers of American Growth
"Our country's prosperity depends on it having an efficient and well maintained rail system. They're the only mode of transportation that can handle growth."
– Warren Buffett
"If I had asked my customers what they wanted, they would have said a faster horse."
– Henry Ford
From the industrial age to the digital revolution, the growth of the United States has been made possible through infrastructure, innovation, energy and rail.
Invesco Unit Trusts identified what we believe are the most current and relevant US investment themes. We believe these themes may have the potential to benefit from increased spending and investment towards growth in America.
1 Exploring the potential innovation in North American rail, HP January 2014
There is no assurance that a trust will achieve its investment objective. An investment in a 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. Each 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 a trust.
Each 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.
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 a trust's securities pay which would reduce your income and may cause the value of the Units to fall.
Trusts may be concentrated in the securities of a particular industry or geographic region, and would be susceptible to the associated risks.
Each series of the INFA & INOV trusts invest significantly, and may be 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.
Each series of the MLPI & INFA trusts invest significantly in MLPs, which operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. MLPs are also subject to the risk that US taxing authorities could challenge tax treatment of MLPs for federal income tax purposes which could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of a trust's investments.
Each series of the RAIL trust is concentrated in securities issued by companies in the railroad sector. Negative developments in this sector will affect the value of your investment more than would be the case in a more diversified investment.
Each series of the RAIL trust invests significantly, and may be concentrated in, securities issued by companies domiciled in Canada.
Each series of the INFA trust invests significantly, and may be concentrated, in the industrials sectors. Risks related to industrials companies include the state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer spending trends.
Each series of the MLPI has closed-end funds that invest in MLPs. Shares of closed-end funds tend to trade at a discount from their net asset value and are subject to risks related to factors such as management's ability to achieve a fund's objective, market conditions affecting a fund's investments and use of leverage. The Portfolio and the underlying funds have management and operating expenses. You will bear not only your share of the Portfolio's expenses, but also the expenses of the underlying funds. By investing in other funds, the Portfolio incurs greater expenses than you would incur if you invested directly in the funds.
"Smart" Asset Allocation with Invesco Unit Trusts
Invesco Unit Trusts now offers three new asset allocation portfolios; the PowerShares Smart Beta Portfolios. The trusts offer exposure to the best of Invesco's cutting edge investment and asset allocation expertise combined with PowerShares' leadership in providing Smart Beta ETFs.
3 Reasons to Consider…
- Cutting Edge Asset Allocation
Invesco's Expertise. The Invesco Solutions team is a dedicated resource focused on building multi-asset strategies. The team used its extensive asset allocation expertise to design three PowerShares Smart Beta Portfolios tailored for different objectives: income, growth and income, and growth.
- PowerShares Smart Beta ETFs
Broad and Unique ETFs. Smart Beta ETFs offer investors the opportunity to retain broad market exposure, potentially achieve long-term outperformance to market-cap-weighted indexes, and reduce portfolio risk.
- Access with Invesco Unit Trusts — Three Unique Portfolios
Simple, Convenient Exposure. Investors can easily access these unique portfolios through unit trusts, which are efficient, targeted and transparent investment vehicles.
Three unique unit trust portfolios designed to meet investor needs
|Income (PSIC) |
PowerShare Smart Beta
|Income (PSGI) |
PowerShare Smart Beta
Growth & Income Porfolio
|Income (PSGR) |
PowerShare Smart Beta
The asset allocation and strategic allocation targets above are for illustrative purposes only. Actual series will vary.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta is an alternative and selection index based methodology that may outperform a benchmark or reduce portfolio risk, or both. Smart Beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
There is no assurance that a trust will achieve its investment objective. An investment in a 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. Each 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 a trust.
An issuer may be unwilling or unable to declare dividends in the future, or may reduce the level of dividends declared. This may result in a reduction in the value of the units.
The value of the fixed income securities in certain of the ETFs will generally fall if interest rates, in general, rise. No one can predict whether interest rates will rise or fall in the future. A security issuer may be unable to make interest and/or principal payments in the future. This may reduce the level of dividends certain of the ETFs pay which would reduce your income and cause the value of the units to fall.
Each portfolio invests in shares of ETFs. Shares of ETFs may trade at a discount from their net asset value and are subject to risks related to factors such as management’s ability to achieve a fund’s objective, market conditions affecting a fund’s investments and use of leverage. In addition, there is the risk that an active secondary market may not develop or be maintained, or trading may be halted by the exchange on which they trade, which may impact the portfolio’s ability to sell the ETF shares. The portfolios and the underlying funds have management and operating expenses. You will bear not only your share of a portfolio’s expenses, but also the expenses of the underlying funds. By investing in other funds, a portfolio incurs greater expenses than you would incur if you invested directly in the funds.
Securities of foreign issuers held by certain ETFs in the portfolios present risks beyond those of U.S. issuers. These risks may include market and political factors related to the issuer’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.
Certain ETFs in the portfolios invest in securities in emerging markets. Investing in emerging markets entails the risk that news and events unique to a country or region will affect those markets and their issuers. Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets.
Certain ETFs in the portfolios invest in shares of REITs and other real estate companies. These shares may appreciate or depreciate in value, or pay dividends depending upon global and local economic conditions, changes in interest rates and the strength or weakness of the real estate market.
Certain of the securities held by ETFs in the portfolios are issued by issuers that are considered to be “growth” companies. Securities of growth companies may be more volatile than other securities. If the perception of an issuer’s growth potential is not realized, the securities may not perform as expected, reducing the portfolio’s return.
Certain of the securities held by ETFs in the portfolios are stocks of smaller capitalization companies. These stocks are often more volatile and have lower trading volumes than stocks of larger companies. Smaller capitalization companies may have limited products or financial resources, management inexperience and less publicly available information.
Certain ETFs in the portfolios may invest in securities rated below investment grade and considered to be “junk” securities. Securities rated below “BBB-” by Standards & Poors 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.
Certain ETFs in the portfolios invest in preferred securities. 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. Income payments on many preferred securities may be deferred for 20 consecutive quarters or more but investors are generally taxed as if they had received current income during any deferral period.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Profile Fact Card
European Dividend Sustainability Portfolio
What makes an aristocrat? A commitment to dividends.
Invesco believes that sustainable dividend income and capital appreciation potential are important to total return expectations. Corporate managers use stable and increasing dividends as a sign of confidence in their firm's prospects, while investors may consider such track records as signs of corporate maturity and strength.1
The European Dividend Sustainability Portfolio may provide access to rising income from a unique portfolio of companies that have a history of increasing dividends for the past 10 years.
An accommodative monetary policy and improving economic growth has helped European markets continue to recover. The region may be poised for a potentially longer and more sustainable rally in the equity markets. Dividend paying equities from European markets offer investors exciting potential opportunities to take advantage of the European growth potential as well as to diversify income sources.
Source: Ned Davis Research and Invesco Unit Trusts, as of 10/31/13. Does not represent the performance of any Invesco UIT. Past performance does not guarantee future results and the payment of dividends is never assured and may vary over time.
Indexes are unmanaged and one cannot invest directly in an index. All stocks were categorized by the following methodology for total return of each 12-month period over the course of the last 30 year period ended October 31, 2013. Dividend Cutters and Eliminators represents stocks in the MSCI EAFE that have lowered or eliminated their dividend; Non-Dividend-Paying Stocks represents non-dividend-paying stocks of the MSCI EAFE; Dividend Payers With No Change represents all dividend-paying stocks of the MSCI EAFE that have maintained their existing dividend rate; All Dividend-Paying Stocks represents all dividend paying stocks in the MSCI EAFE; and Dividend Growers and Initiators represents all dividend-paying stocks of the MSCI EAFE that raised their existing dividend or initiated a new dividend. Performance does not represent any unit trust or strategy.
Dividend strategies across borders
Invesco also offers US and international dividend plays to consider in your overall investment portfolio.
- Dividend Sustainability Portfolio (DVST)
A portfolio of US stocks with a history of increasing dividends for the past 25 years.
- International Dividend Sustainability Portfolio (IDST)
A portfolio of international stocks with a history of increasing dividends and the potential to increase future dividend distributions.
Souce: FactSet Research Systems, Inc. 01/31/14
Past performance does not guarantee future results.
1 There is no guarantee of future results, and the payment of dividends are never assured and may vary over time.
The Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI EAFEASM”). It is an unmanaged index generally representative of major overseas stock markets. Investing in foreign securities involves certain risks not typically associated with investing solely in the United States. This may magnify volatility due to changes in foreign exchange rates, the political and economic uncertainties in foreign countries, and the potential lack of liquidity, government supervision and regulation.
Indexes are statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.
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.
Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer's board of directors and the amount of any dividend may vary over time.
Investing in foreign securities involves certain risks not typically associated with investing solely in the United States. This may magnify volatility due to changes in foreign exchange rates, the political and economic uncertainties in foreign countries, and the potential lack of liquidity, government supervision and regulation.
The portfolio is concentrated in securities issued by companies domiciled in the United Kingdom. As a result, political or economic developments in the United Kingdom may have a significant impact on the securities included in the portfolio.
The portfolio is concentrated in the consumer staples sector. Companies that manufacture, distribute and provide consumer products and services face risks such as intense competition, the lack of serious barriers to entry for online entrants, economic recession and a slowdown in consumer spending trends.