Ticker: AFRAX (Class A)

Invesco Floating Rate ESG Fund

Seeks total return by investing in senior secured floating rate loans and debt instruments while integrating environmental, social, and governance (ESG) criteria.

Reasons to invest

The Invesco Floating Rate ESG Fund targets floating-rate high yield returns by investing in the senior, private debt of large companies. Floating-rate loans can help mitigate the impact of rising interest rates. The fund is managed to a high standard for environmental, social, and governance (ESG) risk.

FAQ

The questions that are uppermost on the minds of financial professionals and their clients.

Floating rate loans—also known as bank loans, senior loans, or leveraged loans—are debt obligations issued by companies through banks and other financial institutions. The coupon payments on floating-rate loans reset periodically (typically every 30 or 90 days) based on changes in short-term interest rates such as the London Interbank Offered Rate (LIBOR) and the Secured Overnight Funding Rate (SOFR), plus a credit spread.

Unlike fixed-rate bonds, yields on floating loans rise along with short-term interest rates. The low duration of floating rate loans also aims to help provide some mitigation for investors when interest rates rise. 

Floating rate loans and high-yield corporate bonds are both typically issued by companies with credit ratings below investment grade, which is why they tend to have higher yields. Unlike high-yield bonds, floating-rate loans are backed by a company’s collateral and are classified as senior secured debt, which helps mitigate credit risk.

Senior loans may be attractive in rising interest rate environments thanks to their floating rate coupons. They also offer a core long-term holding in any market environment due to high income potential, diversification potential, and senior secured status.

Invesco is a leader in this asset class and our floating rate team is one of the world’s largest, with over 25 years of credit selection expertise and conservative management. As a private-side investor, we make investment decisions using information not readily accessible to most of our competitors.

The following share classes are offered for this fund: Class A, Class C, Class R, Class R5, Class R6, and Class Y.

Research related funds

To learn more about our alternative bank loan offerings, explore the funds below.

  • Bank Loans

    OOSAX

    Mutual Fund

    Invesco Senior Floating Rate Fund

    Alternative
  • Bank Loans

    XCRTX

    Mutual Fund

    Invesco Dynamic Credit Opportunity Fund

    Alternative

Footnotes

  • The Fund’s investment objective is total return, comprised of current income and capital appreciation.

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    Source: LSEG Lipper Fund Awards. © 2024 LSEG Lipper. All The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed. LSEG Lipper Inc. is a major independent mutual fund tracking organization.