Objective & Strategy
The fund’s investment objective is to provide current income. The fund seeks to achieve its investment objective by actively allocating assets across multiple income producing asset classes and strategies.
Top Holdings | View all
% of Total net assets | |
---|---|
IVZ S&P500 RSPA Equal Weight Inc Advant ETF | 24.96% |
IFI Gov/Credit 1-5 Sep Acct | 13.87% |
US Treasury Bond 11/2053 4.75 | 13.51% |
Invesco High Yield | 12.00% |
IVZ MSCI EAFE Inc Advant ETF | 10.77% |
IVZ QQA Inc Advant ETF | 10.23% |
Short duration US investment grade credit | 7.54% |
Short duration Europe investment grade credit | 3.78% |
MES MS Emerging Future | 3.44% |
EMB iShrs JPM EMBI ETF | 1.66% |
Holdings are subject to change and are not buy/sell recommendations.
Top Holdings | View all
% of Total net assets | |
---|---|
IVZ S&P500 RSPA Equal Weight Inc Advant ETF | 24.96% |
IFI Gov/Credit 1-5 Sep Acct | 13.87% |
US Treasury Bond 11/2053 4.75 | 13.51% |
Invesco High Yield | 12.00% |
IVZ MSCI EAFE Inc Advant ETF | 10.77% |
IVZ QQA Inc Advant ETF | 10.23% |
Short duration US investment grade credit | 7.54% |
Short duration Europe investment grade credit | 3.78% |
MES MS Emerging Future | 3.44% |
EMB iShrs JPM EMBI ETF | 1.66% |
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 (%) |
---|---|---|---|---|---|---|
Custom Invesco Multi-Asset Income Index | 1.73 | 2.13 | 9.49 | 2.94 | 4.59 | 5.07 |
Bloomberg US Aggregate Bond Total Return Index | 0.53 | -0.07 | 2.07 | -1.52 | -0.60 | 1.19 |
Custom Invesco Multi-Asset Income Index | -2.02 | -1.89 | 7.97 | 1.18 | 4.42 | 4.95 |
Bloomberg US Aggregate Bond Total Return Index | -1.64 | -3.06 | 1.25 | -2.41 | -0.33 | 1.35 |
Source: RIMES Technologies Corp.
An investment cannot be made directly in an index.
Expense Ratio per Prospectus
Management Fee | 0.46 |
12b-1 Fee | 0.23 |
Other Expenses | 0.15 |
Interest/Dividend Exp | N/A |
Total Other Expenses | 0.15 |
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) | 0.03 |
Total Annual Fund Operating Expenses | 0.87 |
Contractual Waivers/Reimbursements | -0.02 |
Net Expenses - PER PROSPECTUS | 0.85 |
Additional Waivers/Reimbursements | N/A |
Net Expenses - With Additional Fee Reduction | 0.85 |
Distributions
Capital Gains | Reinvestment Price ($) |
|||
---|---|---|---|---|
Ex-Date | Income | Short Term | Long Term | |
Fund Characteristics
3-Year Alpha | -2.66% |
3-Year Beta | 0.89 |
3-Year R-Squared | 0.96 |
3-Year Sharpe Ratio | -0.39 |
3-Year Standard Deviation | 9.69 |
Number of Securities | 720 |
Total Assets | $942,986,026.00 |
Source: RIMES Technologies Corp.,StyleADVISOR
Benchmark: Custom Invesco Multi-Asset Income Index
Top Holdings | View all
% of Total net assets | |
---|---|
IVZ S&P500 RSPA Equal Weight Inc Advant ETF | 24.96% |
IFI Gov/Credit 1-5 Sep Acct | 13.87% |
US Treasury Bond 11/2053 4.75 | 13.51% |
Invesco High Yield | 12.00% |
IVZ MSCI EAFE Inc Advant ETF | 10.77% |
IVZ QQA Inc Advant ETF | 10.23% |
Short duration US investment grade credit | 7.54% |
Short duration Europe investment grade credit | 3.78% |
MES MS Emerging Future | 3.44% |
EMB iShrs JPM EMBI ETF | 1.66% |
Holdings are subject to change and are not buy/sell recommendations.
Top Holdings | View all
% of Total net assets | |
---|---|
IVZ S&P500 RSPA Equal Weight Inc Advant ETF | 24.96% |
IFI Gov/Credit 1-5 Sep Acct | 13.87% |
US Treasury Bond 11/2053 4.75 | 13.51% |
Invesco High Yield | 12.00% |
IVZ MSCI EAFE Inc Advant ETF | 10.77% |
IVZ QQA Inc Advant ETF | 10.23% |
Short duration US investment grade credit | 7.54% |
Short duration Europe investment grade credit | 3.78% |
MES MS Emerging Future | 3.44% |
EMB iShrs JPM EMBI ETF | 1.66% |
Holdings are subject to change and are not buy/sell recommendations.
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.
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.
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.
Credit Linked Notes Risk. Risks of credit linked notes include those
risks associated with the underlying reference obligation including but not
limited to market risk, interest rate risk, credit risk, default risk and, in some
cases, foreign currency risk. An investor in a credit linked note bears
counterparty risk or the risk that the issuer of the credit linked note will
default or become bankrupt and not make timely payment of principal and
interest of the structured security. Credit linked notes may be less liquid
than other investments and therefore harder to dispose of at the desired
time and price. In addition, credit linked notes may be leveraged and, as a
result, small changes in the value of the underlying reference obligation may
produce disproportionate losses to the Fund.
Bank Loan Risk. There are a number of risks associated with an
investment in bank loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically associated with
debt securities but may be heightened in part because of the limited public
information regarding bank loans. Lack of an active trading market,
restrictions on resale, irregular trading activity, wide bid/ask spreads and
extended trade settlement periods may impair the Fund’s ability to sell bank
loans within its desired time frame or at an acceptable price and its ability to
accurately value existing and prospective investments. Extended trade
settlement periods may result in cash not being immediately available to the
Fund. As a result, the Fund may have to sell other investments or engage in
borrowing transactions to raise cash to meet its obligations. The risk of
holding bank loans is also directly tied to the risk of insolvency or
bankruptcy of the issuing banks. The value of bank loans can be affected by
and sensitive to changes in government regulation and to economic
downturns in the United States and abroad. These risks could cause the
Fund to lose income or principal on a particular investment, which in turn
could affect the Fund’s returns.
Bank loans generally are floating rate loans, which are subject to
interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates.
Dividend Risk. As a group, securities that pay high dividends may fall
out of favor with investors and underperform companies that do not pay
high dividends. Also, changes in the dividend policies of such companies
and the capital resources available for such companies’ dividend payments
may affect the Fund. There is the possibility that dividend-paying companies
could reduce or eliminate the payment of dividends in the future or an
anticipated acceleration of dividends may not occur. Depending on market
conditions, dividend paying stocks that meet the Fund’s investment criteria
may not be widely available for purchase by the Fund, which may increase
the volatility of the Fund’s returns and limit its ability to produce current
income while remaining fully diversified. High-dividend stocks may not
experience high earnings growth or capital appreciation. The Fund’s
performance during a broad market advance could suffer because dividend
paying stocks may not experience the same capital appreciation as
non-dividend paying stocks.
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.
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.
Equity Linked Notes Risk. ELNs may not perform as anticipated and
could cause the Fund to realize significant losses including its entire
principal investment. Other risks include those of the underlying securities,
as well as counterparty risk, liquidity risk and imperfect correlation between
ELNs and the underlying securities.
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. These risks are
greater for the Fund than mutual funds that do not use derivative
instruments or that use derivative instruments to a lesser extent than
the Fund to implement their investment strategies.
Short Position Risk. Because the Fund’s potential loss on a short
position arises from increases in the value of the asset sold short, the Fund
will incur a loss on a short position, which is theoretically unlimited, if the
price of the asset sold short increases from the short sale price. The
counterparty to a short position or other market factors may prevent the
Fund from closing out a short position at a desirable time or price and may
reduce or eliminate any gain or result in a loss. In a rising market, the
Fund’s short positions will cause the Fund to underperform the overall
market and its peers that do not engage in shorting. If the Fund holds both
long and short positions, and both positions decline simultaneously, the
short positions will not provide any buffer (hedge) from declines in value of
the Fund’s long positions. Certain types of short positions involve leverage,
which may exaggerate any losses, potentially more than the actual cost of
the investment, and will increase the volatility of the Fund’s returns.
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.
Foreign Government Debt Risk. Investments in foreign government
debt securities (sometimes referred to as sovereign debt securities) involve
certain risks in addition to those relating to foreign securities or debt
securities generally. The issuer of the debt or the governmental authorities
that control the repayment of the debt may be unable or unwilling to repay
principal or interest when due in accordance with the terms of such debt,
and the Fund may have limited recourse in the event of a default against the
defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or
restructure their debt payments or declare moratoria on payments.
Foreign Currency Tax Risk. If the U.S. Treasury Department were to
exercise its authority to issue regulations that exclude from the definition of
“qualifying income” foreign currency gains not directly related to the Fund’s
business of investing in securities, the Fund may be unable to qualify as a
regulated investment company for one or more years. In this event, the
Fund’s Board of Trustees may authorize a significant change in investment
strategy or other action.
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.
Exchange-Traded Funds Risk. In addition to the risks associated
with the underlying assets held by the exchange-traded fund, investments in
exchange-traded funds are subject to the following additional risks: (1) an
exchange-traded fund’s shares may trade above or below its net asset
value; (2) an active trading market for the exchange-traded fund’s shares
may not develop or be maintained; (3) trading an exchange-traded fund’s
shares may be halted by the listing exchange; (4) a passively managed
exchange-traded fund may not track the performance of the reference
asset; and (5) a passively managed exchange-traded fund may hold
troubled securities. Investment in exchange-traded funds may involve
duplication of management fees and certain other expenses, as the Fund
indirectly bears its proportionate share of any expenses paid by the
exchange-traded funds in which it invests. Further, certain exchange-traded
funds in which the Fund may invest are leveraged, which may result in
economic leverage, permitting the Fund to gain exposure that is greater
than would be the case in an unlevered instrument and potentially resulting
in greater volatility.
Exchange-Traded Notes Risk. Exchange-traded notes are subject to
credit risk, counterparty risk, and the risk that the value of the
exchange-traded note may drop due to a downgrade in the issuer’s credit
rating. The value of an exchange-traded note may also be influenced by
time to maturity, level of supply and demand for the exchange-traded note,
volatility and lack of liquidity in the underlying market, changes in the
applicable interest rates, and economic, legal, political, or geographic events
that affect the referenced underlying market or assets. The Fund will bear its
proportionate share of any fees and expenses borne by an exchange-traded
note in which it invests. For certain exchange-traded notes, there may be
restrictions on the Fund’s right to redeem its investment, which is meant to
be held until maturity.
Investment Companies Risk. Investing in other investment
companies could result in the duplication of certain fees, including
management and administrative fees, and may expose the Fund to the risks
of owning the underlying investments that the other investment company
holds.
Financial Services Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and are disproportionately affected by unstable interest rates,
volatility in the financial markets, changes in domestic and foreign monetary
policy, and changes in industry regulations, each of which could adversely
affect the profitability of such companies. Financial services companies may
also have concentrated portfolios, which makes them especially vulnerable
to unstable economic conditions.
REIT Risk/Real Estate Risk. Investments in real estate related
instruments may be adversely affected by economic, legal, cultural,
environmental or technological factors that affect property values, rents or
occupancies. Shares of real estate related companies, which tend to be
small- and mid-cap companies, may be more volatile and less liquid than
larger companies. If a real estate related company defaults on certain types
of debt obligations held by the Fund, the Fund may acquire real estate
directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory
changes.
Mortgage- and Asset-Backed Securities Risk. Mortgage- and
asset-backed securities, including collateralized debt obligations and
collateralized mortgage obligations, are subject to prepayment or call risk,
which is the risk that a borrower’s payments may be received earlier or later
than expected due to changes in prepayment rates on underlying loans. This
could result in the Fund reinvesting these early payments at lower interest
rates, thereby reducing the Fund’s income. Mortgage- and asset-backed
securities also are subject to extension risk, which is the risk that an
unexpected rise in interest rates could reduce the rate of prepayments,
causing the price of the mortgage- and asset-backed securities and the
Fund’s share price to fall. An unexpectedly high rate of defaults on the
mortgages held by a mortgage pool may adversely affect the value of
mortgage-backed securities and could result in losses to the Fund.
Privately-issued mortgage-backed securities and asset-backed securities
may be less liquid than other types of securities and the Fund may be
unable to sell these securities at the time or price it desires. During periods
of market stress or high redemptions, the Fund may be forced to sell these
securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities
can become illiquid during periods of market stress. Privately-issued
mortgage-related securities are not subject to the same underwriting
requirements as those with government or government-sponsored entity
guarantees and, therefore, mortgage loans underlying privately-issued
mortgage-related securities may have less favorable collateral, credit risk,
liquidity risk or other underwriting characteristics, and wider variances in
interest rate, term, size, purpose and borrower characteristics. The Fund
may invest in mortgage pools that include subprime mortgages, which are
loans made to borrowers with weakened credit histories or with lower
capacity to make timely payments on their mortgages. Liquidity risk is even
greater for mortgage pools that include subprime mortgages.
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.
MLP Risk. The Fund invests in securities of MLPs, which are subject to
the following risks:
- Limited Partner Risk. An MLP is a public limited partnership or limited liability company taxed as a partnership under the Internal Revenue Code of 1986, as amended (the Code). Although the characteristics of MLPs closely resemble a traditional limited partnership, a major difference is that MLPs may trade on a public exchange or in the over-the-counter market. The risks of investing in an MLP are similar to those of investing in a partnership, including more flexible governance structures, which could result in less protection for investors than investments in a corporation. Investors in an MLP normally would not be liable for the debts of the MLP beyond the amount that the investor has contributed but investors may not be shielded to the same extent that a shareholder of a corporation would be. In certain circumstances, creditors of an MLP would have the right to seek return of capital distributed to a limited partner, which right would continue after an investor sold its investment in the MLP. In addition, MLP distributions may be reduced by fees and other expenses incurred by the MLP.
- Equity Securities Risk. Investment in MLPs involves risks that differ from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general partner, dilution risks and cash flow risks. MLP common units can be affected by macroeconomic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs, changes in a particular issuer’s financial condition, or unfavorable or unanticipated poor performance of a particular issuer.
- Liquidity Risk. The ability to trade on a public exchange or in the over-the-counter market provides a certain amount of liquidity not found in many limited partnership investments. However, MLP interests may be less liquid than conventional publicly traded securities and, therefore, more difficult to trade at desirable times and/or prices.
- Interest Rate Risk. MLPs generally are considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide attractive returns.
- General Partner Risk. The holder of the general partner or managing member interest can be liable in certain circumstances for amounts greater than the amount of the holder’s investment in the general partner or managing member.
- MLP Tax Risk. MLPs taxed as partnerships do not pay U.S. federal income tax at the partnership level, subject to the application of certain partnership audit rules. A change in current tax law, or a change in the underlying business mix of a given MLP, however, could result in an MLP being classified as a corporation for U.S. federal income tax purposes, which would have the effect of reducing the amount of cash available for distribution by the MLP and, as a result, could result in a reduction of the value of the Fund’s investment, and consequently your investment in the Fund and lower income. Each year, the Fund will send you an annual tax statement (Form 1099) to assist you in completing your federal, state and local tax returns. If an MLP in which the Fund invests amends its partnership tax return, the Fund will, when necessary, send you a corrected Form 1099, which could, in turn, require you to amend your federal, state or local tax returns.
Indexing Risk. Certain portions of the Fund’s assets are managed pursuant to an indexing approach (Indexed Assets) and, therefore, the adverse performance of a particular security necessarily will not result in the elimination of the security from the Indexed Assets. Ordinarily, the Fund will not sell portfolio securities of the Indexed Assets except to reflect additions or deletions of the securities that comprise the index the Fund seeks to track with respect to the Indexed Assets (Underlying Index), or as may be necessary to raise cash to pay Fund shareholders who redeem Fund shares. As such, the Indexed Assets, and therefore the Fund, will be negatively affected by declines in the securities represented by the Underlying Index. Also, there is no guarantee that the Fund will be able to correlate the performance of the Indexed Assets with that of the Underlying Index.
Non-Correlation Risk. The return of the Fund’s assets managed pursuant to an indexing approach (Indexed Assets) may not match the return of the index the Fund seeks to track with respect to the Indexed Assets (Underlying Index) for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing securities holdings to reflect changes in the Underlying Index. In addition, the performance of the Indexed Assets and the Underlying Index may vary due to asset valuation differences and differences between the Indexed Assets and the Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Sampling Risk. The Fund’s use of a sampling methodology with respect to assets managed pursuant to an indexing approach (Indexed Assets) may result in the Indexed Assets including a smaller number of securities than are in the index the Fund seeks to track with respect to the Indexed Assets (Underlying Index), and in the Indexed Assets including securities that are not included in the Underlying Index. As a result, an adverse development to an issuer of securities included in the Indexed Assets could result in a greater decline in the Fund’s NAV than would be the case if all of the securities in the Underlying Index were included in the Indexed Assets. The Fund’s use of a sampling methodology may also include the risk that the Indexed Assets may not track the return of the Underlying Index as well as they would have if the Indexed Assets included all of the securities in the Underlying Index. To the extent the assets in the Indexed Assets are smaller, these risks will be greater.
U.S. Government Obligations Risk. Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Money Market Fund Risk. Although money market funds generally seek to preserve the value of an investment at $1.00 per share, the Fund may lose money by investing in money market funds. A money market fund’s sponsor has no legal obligation to provide financial support to the money market fund. The credit quality of a money market fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the money market fund’s share price. A money market fund’s share price can also be negatively affected during periods of high redemption pressures, illiquid markets and/or significant market volatility.
Financial Markets Regulatory Risk. Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
Management Risk. Certain portions of the Fund’s assets are actively managed and depend 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. Because the Fund’s investment process relies heavily on its asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse effect on the Fund’s net asset value. 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 Multi-Asset Income Fund commentary
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