Unit Trusts

Symbol: BUYB
Fact Card
Prospectus

Why Stock Buybacks?

Timely
Cash on company balance sheets remains at all-time highs and interest rates remain low relative to historic averages, allowing companies to finance buybacks with cheap money.
Tax Efficient
Compared to dividends, buybacks offer a company's management a means of returning cash to shareholders in a more tax-efficient manner since buybacks are not a taxable event until shares are sold.
Investor Sentiment
Buybacks that decrease shares outstanding automatically increase EPS, whichmay improve investor sentiment.

Increase in share buybacks have historically correlated to stock market increases

Source: Bloomberg L.P. as of 3/31/15
The above chart portrays past performance which is no guarantee of future results, and further, does not reflect the performance of any Invesco unit trust. Any change in share buyback activity among S&P 500 companies will not necessarily correspond to the performance of any series of the BUYB portfolio.

Selection Process

1 Measured by total cash paid for common shares in the last four quarters divided by total market cap at the beginning of the buyback period.
2 Some of the fundamentals, among others, used to select the portfolio.

About risk

There is no assurance that a unit investment trust will achieve its investment objective. An investment in this unit 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 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.

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.

The trust is concentrated in the consumer discretionary and consumer staples sectors. 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.

The portfolio does not replicate all of the components of the S&P 500 Buyback Index or its component weightings and the stocks in the portfolio will not change if the index components, or their weightings within the index, change. The performance of the Portfolio will not correspond with the S&P 500 Buyback Index for this reason and because the Portfolio incurs a sales charge and expenses. The Portfolio is not intended to replicate the performance of the index.

International equities – performance and income

Invesco believes that sustainable dividend income and capital appreciation potential are both important to total return expectations. While certain domestic companies have been able to consistently grow their dividend distributions, many international companies have shown the ability to grow dividends over multiple periods. Of course, there is no guarantee of future results and the payment of stock dividends is not assured and may vary over time.

For investors interested in international equities, Invesco Unit Trust’s International Dividend Sustainability Portfolio (IDST) is a fundamentally selected portfolio of international stocks with a history of increasing dividends and with the potential to increase future dividends as well.

International Dividend Growers have historically performed well with an average annual return of 10% from May 31, 1994 through March 31, 2016 as the chart below will show.

Strength of international dividend-paying stocks

International dividend-paying stocks can add additional dimension to your portfolio in any environment. A company that can pay dividends when the market is in flux may demonstrate strength and may add an element of stability to your portfolio.

Average annual total returns of MSCI EAFE stocks by dividend policy (period ended Mar. 31, 2016)

Dividend growth has historically tied to strong performance.

Source: 2016 Ned Davis Research, Inc. Past performance does not guarantee future results. 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 since May 31, 1994 period ended Mar. 31, 2016. 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. The Morgan Stanley Capital International Europe, Australasia, and Far East Index ("MSCI EAFE") is an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is US dollar adjusted.

Ready to learn more? Contact your Invesco representative or financial advisor for more on how Invesco International Dividend Sustainability Portfolio may help with income as well as performance.

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 a unit investment trust will achieve its investment objective. An investment in a unit trust is subject to market risk, which is the possibility that the market values of securities owned by a unit 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 the portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in a unit trust. The trust should be considered as part of a long-term investment strategy and you should consider their 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.

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.

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 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.

This trust is concentrated in the consumer discretionary and consumer staples sectors. Companies in these sectors face risks such as intense competition, the lack of serious barriers to entry for on-line entrants, economic recession and a slowdown in consumer spending trends.

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.

Trust Objective: Invesco Unit Trusts offers a portfolio that seeks to provide above-average capital appreciation by investing in a portfolio of international stocks and American Depositary Receipts ("ADRs") of companies with a history of increasing dividend distributions.

Index Definitions

The Morgan Stanley Capital International Europe, Australasia, and Far East Index ("MSCI EAFE") is an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is US dollar adjusted. 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.

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.

A balanced approach to your income needs

Portfolio diversification continues to be an important time honored rule of investing. However, for investors in need of high levels of income, maintaining diversification remains a challenge in the current low interest rate environment. In an attempt to reach for yield, investors may inadvertently overweight particular higher yielding investments to the detriment of their portfolio volatility.

The High Income Allocation Portfolio is a strategy that invests equally in both low volatility (Defensive) and high volatility (Aggressive) asset classes to provide balanced exposure to the uncertainty the markets face.

Invesco High Income Allocation Portfolio combines 10 income producing asset classes that seek both growth and income while seeking to balance risk.

The portfolio seeks to balance the exposure to high and low volatility segments of the equity income market in order to attempt to reduce overall volatility, and to provide exposure to both aggressive and defensive segments of the market. The portfolio will invest in closed-end funds, preferred securities and stocks.

High Income Allocation Portfolio
Asset class allocations are approximate and will vary in each actual portfolio

High Income Allocation Portfolio
Low Volatility/High Income*
Focuses on defensive, lower volatility, higher income asset classes:
High Volatility/High Income*
Focused on higher volatility asset classes with high income
1. Consumer statples 10% 1. Real Estate Investment Trusts (REITs) 10%
2. Health Care 10% 2. Mortgage REITs 10%
3. Utililities 10% 3. Business development companies 10%
4. Telecom 10% 4. Master limited partnerships (MLPs) 10%
5. Dividend payers 10% 5. Preferreds 10%
Total 50% Total 50%
Inclusion criteria
  • Large-cap names
  • Peer analyis-in-sector diversification
Low volatility compared to sector
  • Dividend yields, growth and sustainability
  • Growth estimates and company outlook
Inclusion criteria
  • Valuation, price-book, leverage
  • Underlying portfolio of investments and strategy diversification
  • Credit quality and sector diversification

*For illustrative purposes only. Individual series sector allocations will vary.

There is a wide range of correlations to the various S&P 500 sectors which may help to add a nice diversification benefit.

Investment Sleeve 5-Year Correlation to S&P 500 Index (%)
S&P Preferred Stock TR USD 0.61
S&P 500 Ig/Utilities TR 0.23
S&P 500 Ig/Telecom Services TR 0.43
S&P 500 Sec/Consumer Staples TR USD 0.72
S&P 500 Sec/Health Care TR USD 0.83
FTSE NAREIT Mortgage REITs TR 0.44
FTSE NAREIT Composite TR 0.63
BDC Index 0.36
Alerian MLP TR USD 0.61
S&P High Yield Dividend Aristocrats TR USD 0.91
Source: Bloomberg L.P., FactSet Research Systems, Inc. as of December 31, 2015

Ready to learn more? Contact your Invesco representative or financial advisor for more on how Invesco High Income Allocation Portfolio may help with income as well as potentially bringing down volatility by diversifying across 10 different income producing asset classes.

About Risk

There is no assurance a unit investment trust will achieve its investment objective. An investment in a unit trust is subject to market risk, which is the possibility that the market values of securities owned by a unit 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 the portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in a unit trust. The trust should be considered as part of a long-term investment strategy and you should consider their 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.

A particular series of the trust may be concentrated in certain sectors or geographic regions, and to the extent that it is, your investment in units of a trust series would be subject to the risks associated with such concentrations. Please refer to the prospectus associated with the applicable 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.

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.

Certain securities in the Portfolio, as well as certain of the securities held by the underlying funds in the Portfolio, may be rated below investment grade and considered to be "junk" securities. Securities rated below "BBB-" by Standard & 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.

The financial condition of a security issuer may worsen or its credit ratings may drop, resulting in a reduction in the value of your Units. This may occur at any point in time, including during the initial offering period.

The Portfolio invests 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. Preferred securities are subject to interest rate risk, meaning that their values may fall if interest rates, in general, rise. In addition to the other risks described herein, income payments on certain preferred securities may be deferred for 20 consecutive quarters or more, which may reduce the amount of income you receive on your Units.

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 to 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 Portfolio invests in shares of closed-end funds. In particular, 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.

The Portfolio invests in shares of REITs and other real estate companies. Shares of REITs and other real estate companies 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 overall real estate market.

The Portfolio invests in shares of publicly traded business development companies ("BDCs"). BDCs invest in privately-held companies, the securities of which are generally less liquid than are publicly traded securities. BDCs may have relatively concentrated investment portfolios, consisting of a relatively small number of holdings. A BDC’s gains and losses may be magnified through the use of leverage. BDCs generally depend on access to capital markets in order to raise cash, acquire suitable investments and monitor and implement certain financial strategies. An inability to access these markets may have a negative impact on the value of BDC shares and the value of your units. Many debt investments in which BDCs invest will not be rated by a credit rating agency and will be below investment grade quality.

Trust Objective: The portfolio seeks to provide current income and the potential for capital appreciation. The portfolio seeks to achieve its objective by investing in an income-oriented portfolio consisting of common stocks, closed-end funds that elect to be treated as BDCs and preferred securities.

Index Definitions

Alerian MLP Index is a market-cap weighted, float-adjusted index created to provide a comprehensive benchmark for investors to track the performance of the energy MLP sector. The Index components are selected by Alerian, LLC ("Alerian"). S&P U.S. Preferred Stock Index is an unmanaged index consisting of US-listed preferred stocks. S&P 500 Utilities Index is an unmanaged index considered representative of the utilities market. S&P Telecommunication Services Index is an unmanaged index considered representative of the telecommunications services market. S&P 500 Consumer Staples Index is an unmanaged index considered representative of the consumer staples market. S&P 500 Health Care Index is an unmanaged index considered representative of the health care market. FTSE NAREIT All Equity REITs Index is an unmanaged index considered representative of US REITs. FTSE NAREIT Composite Index is a free float, market capitalization-weighted real estate index designed to represent publicly traded equity REITs and listed property companies in 38 countries worldwide, covering both the developed and emerging markets. The S&P High Yield Dividend Aristocrats® index is designed to measure the performance of companies within the S&P Composite 1500® that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years. The S&P BDC Index is designed to track leading business development companies that trade on major U.S. exchanges.