Objective & Strategy
The fund seeks total return through growth of capital and current income.
Management team
Top Fixed-Income Holdings | View all
Holding Name | Coupon % | Bond Maturity Date | % of Total Assets |
---|---|---|---|
Coinbase Global Inc | 0.250 | 04/01/2030 | 1.84 |
MicroStrategy Inc | 0.000 | 02/15/2027 | 1.53 |
Duke Energy Corp | 4.130 | 04/15/2026 | 1.44 |
Akamai Technologies Inc | 0.380 | 09/01/2027 | 1.36 |
Live Nation Entertainment Inc | 3.130 | 01/15/2029 | 1.25 |
Snap Inc | 0.000 | 05/01/2027 | 1.24 |
Southern Co/The | 3.880 | 12/15/2025 | 1.21 |
ON Semiconductor Corp | 0.500 | 03/01/2029 | 1.18 |
Rivian Automotive Inc | 4.630 | 03/15/2029 | 1.16 |
PG&E Corp | 4.250 | 12/01/2027 | 1.14 |
May not equal 100% due to rounding.
Holdings are subject to change and are not buy/sell recommendations.
Average Annual Returns (%)
Incept. Date |
Max Load (%) |
Since Incept. (%) |
YTD (%) | 1Y (%) | 3Y (%) | 5Y (%) | 10Y (%) | |
---|---|---|---|---|---|---|---|---|
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.
Annualized Benchmark Returns
Index Name | 1 Mo (%) | 3 Mo (%) | 1Y (%) | 3Y (%) | 5Y (%) | 10Y (%) |
---|---|---|---|---|---|---|
ICE BofA US Convertible ex Transaction Cost Total Return Index (USD) | 6.78 | 9.79 | 22.92 | 2.18 | 11.18 | 9.47 |
S&P 500 Total Return Index (USD) | 5.87 | 7.15 | 33.89 | 11.44 | 15.77 | 13.35 |
ICE BofA US Convertible Total Return Index (USD) | 1.94 | 5.27 | 14.68 | -0.47 | 10.49 | 8.88 |
S&P 500 Total Return Index (USD) | 2.14 | 5.89 | 36.35 | 11.91 | 15.98 | 13.38 |
Source: FactSet Research Systems Inc..
Source: RIMES Technologies Corp.
An investment cannot be made directly in an index.
Expense Ratio per Prospectus
Management Fee | 0.51 |
12b-1 Fee | 0.25 |
Other Expenses | 0.18 |
Interest/Dividend Exp | N/A |
Total Other Expenses | 0.18 |
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) | 0.01 |
Total Annual Fund Operating Expenses | 0.95 |
Contractual Waivers/Reimbursements | -0.01 |
Net Expenses - PER PROSPECTUS | 0.94 |
Additional Waivers/Reimbursements | N/A |
Net Expenses - With Additional Fee Reduction | 0.94 |
Distributions
Capital Gains | Reinvestment Price ($) |
|||
---|---|---|---|---|
Ex-Date | Income | Short Term | Long Term | |
Quality Breakdown
Ratings are based on S&P, Moody's or Fitch, as applicable. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. NR indicates the debtor was not rated, and should not be interpreted as indicating low quality. If securities are rated differently by the rating agencies, the higher rating is applied. Credit ratings are based largely on the rating agency's investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. For more information on the rating methodology, please visit the following NRSRO websites: www.standardandpoors.com and select 'Understanding Ratings' under Rating Resources on the homepage; www.moodys.com and select 'Rating Methodologies' under Research and Ratings on the homepage; www.fitchratings.com and select 'Ratings Definitions' on the homepage.
Fund Characteristics
3-Year Alpha | -0.88% |
3-Year Beta | 0.87 |
3-Year R-Squared | 0.92 |
3-Year Sharpe Ratio | -0.47 |
3-Year Standard Deviation | 11.30 |
Number of Securities | 166 |
Total Assets | $766,794,758.00 |
Source: RIMES Technologies Corp.,StyleADVISOR
Top Fixed-Income Holdings | View all
Holding Name | Coupon % | Bond Maturity Date | % of Total Assets |
---|---|---|---|
Coinbase Global Inc | 0.250 | 04/01/2030 | 1.84 |
MicroStrategy Inc | 0.000 | 02/15/2027 | 1.53 |
Duke Energy Corp | 4.130 | 04/15/2026 | 1.44 |
Akamai Technologies Inc | 0.380 | 09/01/2027 | 1.36 |
Live Nation Entertainment Inc | 3.130 | 01/15/2029 | 1.25 |
Snap Inc | 0.000 | 05/01/2027 | 1.24 |
Southern Co/The | 3.880 | 12/15/2025 | 1.21 |
ON Semiconductor Corp | 0.500 | 03/01/2029 | 1.18 |
Rivian Automotive Inc | 4.630 | 03/15/2029 | 1.16 |
PG&E Corp | 4.250 | 12/01/2027 | 1.14 |
May not equal 100% due to rounding.
Holdings are subject to change and are not buy/sell recommendations.
Top Industries
% of Total Assets | |
---|---|
Electric Utilities | 8.76 |
Application Software | 7.25 |
Diversified Banks | 5.83 |
Biotechnology | 5.12 |
Internet Services & Infrastructure | 3.90 |
Transaction & Payment Processing Services | 3.39 |
Health Care Equipment | 3.17 |
Automobile Manufacturers | 3.04 |
Hotels, Resorts & Cruise Lines | 3.00 |
Passenger Airlines | 2.86 |
May not equal 100% due to rounding.
The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.
Fund Documents
About risk
As with any mutual fund investment, loss of money is a risk of investing. An
investment in the Fund is not a deposit in a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
governmental agency. The risks associated with an investment in the Fund
can increase during times of significant market volatility. The principal risks
of investing in the Fund are:
Market Risk. The market values of the Fund’s investments, and
therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or
section of the economy, or it may affect the market as a whole. The value of
the Fund’s investments may go up or down due to general market
conditions that are not specifically related to the particular issuer, such as
real or perceived adverse economic conditions, changes in the general
outlook for revenues or corporate earnings, changes in interest or currency
rates, regional or global instability, natural or environmental disasters,
widespread disease or other public health issues, war, military conflict, acts
of terrorism, economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may
decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Convertible Securities Risk. The market values of convertible
securities are affected by market interest rates, the risk of actual issuer
default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted.
Additionally, a convertible security is subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition,
certain convertible securities are subject to involuntary conversions and may
undergo principal write-downs upon the occurrence of certain triggering
events, and, as a result, are subject to an increased risk of loss. Convertible
securities may be rated below investment grade and therefore considered to
have more speculative characteristics and greater susceptibility to default or
decline in market value than investment grade securities.
Debt Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the
issuer and other factors. An increase in prevailing interest rates typically
causes the value of existing debt securities to fall and often has a greater
impact on longer-duration debt securities and higher quality debt securities.
Falling interest rates will cause the Fund to reinvest the proceeds of debt
securities that have been repaid by the issuer at lower interest rates. Falling
interest rates may also reduce the Fund’s distributable income because
interest payments on floating rate debt instruments held by the Fund will
decline. The Fund could lose money on investments in debt securities if the
issuer or borrower fails to meet its obligations to make interest payments
and/or to repay principal in a timely manner. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of
the issuer or the security may affect the value of debt securities. The
Adviser’s credit analysis may fail to anticipate such changes, which could
result in buying a debt security at an inopportune time or failing to sell a
debt security in advance of a price decline or other credit event.
Changing Fixed Income Market Conditions Risk. Increases in the
federal funds and equivalent foreign rates or other changes to monetary
policy or regulatory actions may expose fixed income markets to heightened
volatility and reduced liquidity for certain fixed income investments,
particularly those with longer maturities. It is difficult to predict the impact of
interest rate changes on various markets. In addition, decreases in fixed
income dealer market-making capacity may also potentially lead to
heightened volatility and reduced liquidity in the fixed income markets. As a
result, the value of the Fund’s investments and share price may decline.
Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s
portfolio turnover rate and transaction costs.
Preferred Securities Risk. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity securities.
Preferred securities also may be subordinated to bonds or other debt
instruments, subjecting them to a greater risk of non-payment, may be less
liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
High Yield Debt Securities (Junk Bond) Risk. Investments in high
yield debt securities (“junk bonds”) and other lower-rated securities will
subject the Fund to substantial risk of loss. These securities are considered
to be speculative with respect to the issuer’s ability to pay interest and
principal when due, are more susceptible to default or decline in market
value and are less liquid than investment grade debt securities. Prices of
high yield debt securities tend to be very volatile.
Sector Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related
industries. In this event, the Fund’s performance will depend to a greater
extent on the overall condition of the sector or group of industries and there
is increased risk that the Fund will lose significant value if conditions
adversely affect that sector or group of industries.
Foreign Securities Risk. The Fund’s foreign investments may be
adversely affected by political and social instability, changes in economic or
taxation policies, difficulty in enforcing obligations, decreased liquidity or
increased volatility. Foreign investments also involve the risk of the possible
seizure, nationalization or expropriation of the issuer or foreign deposits (in
which the Fund could lose its entire investments in a certain market) and
the possible adoption of foreign governmental restrictions such as exchange
controls. Foreign companies generally may be subject to less stringent
regulations than U.S. companies, including financial reporting requirements
and auditing and accounting controls, and may therefore be more
susceptible to fraud or corruption. There may be less public information
available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. Unless the Fund has hedged its
foreign currency exposure, foreign securities risk also involves the risk of
negative foreign currency rate fluctuations, which may cause the value of
securities denominated in such foreign currency (or other instruments
through which the Fund has exposure to foreign currencies) to decline in
value. Currency exchange rates may fluctuate significantly over short
periods of time. Currency hedging strategies, if used, are not always
successful.
Depositary Receipts Risk. Investing in depositary receipts involves
the same risks as direct investments in foreign securities. In addition, the
underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights
with respect to the deposited securities to the holders of such receipts. The
Fund may therefore receive less timely information or have less control than
if it invested directly in the foreign issuer.
Emerging Market Securities Risk. Emerging markets (also referred
to as developing markets) are generally subject to greater market volatility,
political, social and economic instability, uncertain trading markets and more
governmental limitations on foreign investment than more developed
markets. In addition, companies operating in emerging markets may be
subject to lower trading volume and greater price fluctuations than
companies in more developed markets. Such countries’ economies may be
more dependent on relatively few industries or investors that may be highly
vulnerable to local and global changes. Companies in emerging market
countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than
companies in more developed countries. As a result, information, including
financial information, about such companies may be less available and
reliable, which can impede the Fund’s ability to evaluate such companies.
Securities law and the enforcement of systems of taxation in many
emerging market countries may change quickly and unpredictably, and the
ability to bring and enforce actions (including bankruptcy, confiscatory
taxation, expropriation, nationalization of a company’s assets, restrictions on
foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share
blocking), or to obtain information needed to pursue or enforce such
actions, may be limited. In addition, the ability of foreign entities to
participate in privatization programs of certain developing or emerging
market countries may be limited by local law. Investments in emerging
market securities may be subject to additional transaction costs, delays in
settlement procedures, unexpected market closures, and lack of timely
information.
Liquidity Risk. The Fund may be unable to sell illiquid investments at
the time or price it desires and, as a result, could lose its entire investment
in such investments. Liquid securities can become illiquid during periods of
market stress. If a significant amount of the Fund’s securities become
illiquid, the Fund may not be able to timely pay redemption proceeds and
may need to sell securities at significantly reduced prices.
Rule 144A Securities and Other Exempt Securities Risk. The
market for Rule 144A and other securities exempt from certain registration
requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as
privately issued securities, carry the risk that their liquidity may become
impaired and the Fund may be unable to dispose of the securities at a
desirable time or price.
Restricted Securities Risk. Limitations on the resale of restricted
securities may have an adverse effect on their marketability, and may
prevent the Fund from disposing of them promptly at reasonable prices.
There can be no assurance that a trading market will exist at any time for
any particular restricted security. Transaction costs may be higher for
restricted securities and such securities may be difficult to value and may
have significant volatility.
Derivatives Risk. The value of a derivative instrument depends largely
on (and is derived from) the value of an underlying security, currency,
commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the
use of derivatives may include other, possibly greater, risks, including
counterparty, leverage and liquidity risks. Counterparty risk is the risk that
the counterparty to the derivative contract will default on its obligation to pay
the Fund the amount owed or otherwise perform under the derivative
contract. Derivatives create leverage risk because they do not require
payment up front equal to the economic exposure created by holding a
position in the derivative. As a result, an adverse change in the value of the
underlying asset could result in the Fund sustaining a loss that is
substantially greater than the amount invested in the derivative or the
anticipated value of the underlying asset, which may make the Fund’s
returns more volatile and increase the risk of loss. Derivative instruments
may also be less liquid than more traditional investments and the Fund may
be unable to sell or close out its derivative positions at a desirable time or
price. This risk may be more acute under adverse market conditions, during
which the Fund may be most in need of liquidating its derivative positions.
Derivatives may also be harder to value, less tax efficient and subject to
changing government regulation that could impact the Fund’s ability to use
certain derivatives or their cost. Derivatives strategies may not always be
successful. For example, derivatives used for hedging or to gain or limit
exposure to a particular market segment may not provide the expected
benefits, particularly during adverse market conditions.
Management Risk. The Fund is actively managed and depends
heavily on the Adviser’s judgment about markets, interest rates or the
attractiveness, relative values, liquidity, or potential appreciation of particular
investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the
Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Invesco Convertible Securities Fund commentary
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