Ticker: ACTHX (Class A)

Invesco High Yield Municipal Fund

Seeks federal tax-exempt current income and taxable capital appreciation.

Reasons to invest

The Invesco High Yield Municipal Fund seeks to provide enhanced levels of tax-free income by purchasing high yield and investment grade municipal bonds that are exempt from federal personal income taxes. As the second-largest high yield municipal bond manager1, we use our size and deep experience to provide investors consistent access to bond issues.

4-star Morningstar rating - High Yield Muni Category

As of 3/31/2024 the Fund had an overall rating, based on risk-adjusted returns, of 4 stars out of 185 funds and was rated 3 stars out of 185 funds, 3 stars out of 176 funds and 5 stars out of 118 funds for the 3-, 5- and 10-year periods, respectively.


Get timely answers to important questions regarding this product.

High yield municipal bonds typically pay higher yields than investment grade municipal bonds to compensate investors for higher credit and liquidity risks.

Municipal bonds are attractive in taxable accounts because the income they produce is exempt from federal income taxes and may also be exempt from state and local taxes. Adding municipal bonds may also provide diversification for fixed income portfolios.

Our approach to investing aims to deliver a highly competitive yield while diversifying both sector and individual security risks. The Invesco Municipal Bond Fund team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.

Municipalities have two main reasons for issuing bonds without a credit rating. First, some issues are of higher quality but the rating is foregone because the size or placement of the issue makes it uneconomical to pay for the rating. Second, many non-rated bonds would not meet the rating criteria of the rating agencies, or, if rated, would fall below investment grade (below triple-B).

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

Explore related funds

To learn more about our municipal fixed income offerings, explore the funds below.

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    Invesco AMT-Free Municipal Income Fund

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  • US Fixed Income


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    Invesco Short Term Municipal Fund

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  • The Fund’s investment objective is to seek federal tax-exempt current income and taxable capital appreciation.

  • Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2024 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. 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. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.

  • 1

    Source: Simfund, as of March 31, 2024. Invesco is the 2nd largest high yield municipal fund manager out of 46 municipal portfolio managers. 

  • 2

    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.comAlthough 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.