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Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart beta represents an alternative and selection index-based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both in active or passive vehicles. Asset allocation and diversification do not guarantee a profit or eliminate the risk of loss.
The Invesco models are overseen by the Invesco Solutions team. The team is a part of Invesco Advisers, Inc., an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. It is an indirect, wholly owned subsidiary of Invesco Ltd.
The Investment Advisers Act of 1940 requires investment advisory firms, such as Invesco Advisers, Inc., to file and keep current with the Securities and Exchange Commission a registration statement of Form ADV. Part II of Form ADV contains information about the background and business practices of Invesco Advisers, Inc. Under the Commission’s rules, we are required to offer to make available annually Part II of Form ADV to our clients along with our privacy policy. Accordingly, if you would like to receive a copy of this material, please write to Invesco Advisers, Inc., Managed Accounts Operations Department, 11 Greenway Plaza, Suite 1000, Houston, Texas 77046. For more complete information about our separately managed portfolio, please contact your financial advisor.
Invesco Vision, designed by the Invesco Solutions team, is a decision support system that combines analytical and diagnostic capabilities to foster better portfolio management decision-making. By helping investors and researchers better understand portfolio risks and trade-offs, it helps to identify potential solutions best aligned with their specific preferences and objectives. The Invesco Vision tool can be used in practice to develop solutions across a range of challenges encountered in the marketplace.
With respect to Invesco Advisers, Inc. (“Invesco”) model portfolios, Invesco intends to allocate a significant percentage of the portfolio to funds for which Invesco and/or its affiliates serve as investment manager (“Invesco Affiliated Funds”). Clients will indirectly bear fund expenses as shareholders for their account assets allocated to Invesco Affiliated Funds and funds for which Invesco and/or its affiliates do not receive compensation. For client account assets allocated to the Invesco Affiliated Funds, fees will be received by Invesco and/or its affiliates directly from the respective Invesco Affiliated Fund. These compensation arrangements create a conflict of interest relating to Invesco’s selection of funds (including from among the Invesco Affiliated Funds) for the strategy and the receipt of potentially higher compensation based on the selection. Invesco has an incentive to select Invesco Affiliated Funds for the strategy, including Invesco Affiliated Funds with higher expenses, over other funds (including other Invesco Affiliated Funds) with lower expenses because the fees that Invesco and/or its affiliates receive for client account assets in the Invesco Affiliated Funds are their compensation with respect to the strategy. This conflict of interest may result in a strategy that achieves a level of performance, or reflects higher fees, less favorable to the strategy than otherwise would be the case if Invesco did not allocate to an Invesco Affiliated Fund.
