Ticker: ISHAX (Class A)

Invesco Short Duration High Yield Municipal Fund

Invests in shorter duration medium- and lower-grade municipal securities.

Product detail Fact sheet

2024 LSEG Lipper Fund Award – Best Fixed Income Group

Recognized among large U.S. investment managers for outstanding overall performance.2

Reasons to invest

The Invesco Short Duration High Yield Municipal Fund seeks to provide higher levels of tax-free income by purchasing shorter-term 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 9/30/2024 the Fund had an overall rating, based on risk-adjusted returns, of 4 stars out of 184 funds and was rated 5 stars out of 184 funds, 3 stars out of 177 funds and not rated for the 3-, 5- and 10-year periods, respectively.

Rigorous credit research

We assign forward-looking internal ratings to every holding and conduct site visits on all high yield and non-rated deals.

Experience that matters

We use our knowledge and relationships across the $4 trillion municipal market to uncover and capitalize on relative value opportunities.

Maximize income potential

We endeavor to provide competitive monthly distribution yields with our time-tested risk aware investment process.

FAQ

Get timely answers to important questions regarding this product.

The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.

Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market.  The Invesco Municipal Bond 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.

  • US Fixed Income

    OPTAX

    Mutual Fund

    Invesco AMT-Free Municipal Income Fund

    Fixed Income
  • US Fixed Income

    ORSTX

    Mutual Fund

    Invesco Short Term Municipal Fund

    Fixed Income

Footnotes

  • The Fund’s investment objective is to seek federal tax-exempt current income and taxable capital appreciation.
  • 1

    Source: Simfund, as September 30, 2024. Invesco is the 2nd largest high yield municipal fund manager out of 46 municipal portfolio managers.

    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.
  • 2

    Source: LSEG Lipper Fund Awards. © 2024 LSEG Lipper. Asset class group awards will be given to the best large and small groups separately. Large fund family groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. Small fund family groups will need to have at least three distinct portfolios in one of the asset classes – equity, bond, or mixed-asset. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period. In cases of identical results, the lower average percentile rank will determine the winner.