Prospectus
March
28, 2024
Class: A
(MLPFX ), C (MLPEX ), R
(SPMWX ), Y (MLPTX ), R5
(SPMVX ), R6 (OSPSX )
Invesco
SteelPath MLP Select 40 Fund
As with all other
mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has
not approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
An investment in
the Fund:
■
is not FDIC
insured;
■
may lose value;
and
■
is not guaranteed
by a bank.
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Back
Cover |
Invesco
SteelPath MLP Select 40 Fund
The Fund’s
investment objective is to seek total return.
This table
describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a
shareholder may be required to pay directly to its financial intermediary when
buying or selling Class Y or Class R6 shares.You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in the
Invesco Funds. More information about these and other discounts
is available from your financial professional and in the section “Shareholder
Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3
of the prospectus and the section “Purchase, Redemption and Pricing of Shares –
Purchase and Redemption of Shares” on page L-1 of the statement of additional
information (SAI).
|
Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
% |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
|
% |
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Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Management
Fees |
% |
% |
% |
% |
% |
% |
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Distribution
and/or Service (12b-1) Fees |
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Deferred
Income Tax Expense2 |
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Other
Expenses |
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Interest |
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Total
Other Expenses |
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Total
Annual Fund Operating Expenses |
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Fee
Waiver and/or Expense Reimbursement3 |
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Total
Annual Fund Operating Expenses After Fee
Waiver
and/or Expense Reimbursement |
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1
2
“Deferred Income Tax Expense” represents an
estimate (based on the Fund’s most recent fiscal year end) of the Fund's
potential tax expense if it were to recognize the unrealized gains in the
portfolio. The Fund accrues deferred tax liability for its future tax liability
associated with the capital appreciation of its investments and the
distributions received by the Fund considered to be a return of capital and for
any net operating gains. The Fund's accrued deferred income tax liability if
any, is reflected each day in the Fund's net asset value per share. An estimate
of deferred income tax expense depends upon the Fund's investment income/(loss)
and realized and unrealized gains/(losses) on investments and such expenses may
vary greatly from day to day, month to month and year to year depending on the
nature of the Fund's investments, the performance of those investments and
general market conditions. Therefore, an estimate of deferred income tax expense
cannot be reliably predicted from year to year and the estimate disclosed in the
fee table above will not be representative of the actual deferred tax expense of
the Fund on any given day.
3
Invesco Advisers,
Inc. (Invesco or the Adviser) has contractually agreed to waive advisory fees
and/or reimburse expenses to the extent necessary to limit Total Annual Fund
Operating Expenses After Fee Waiver and/or Expense Reimbursement (excluding
deferred income tax expense, tax expense, interest expense and certain other
items discussed in the SAI) of Class A, Class C, Class R, Class Y, Class R5 and
Class R6 shares to 1.11%, 1.86%, 1.36%, 0.86%, 0.86% and 0.86%, respectively, of
the Fund's average daily net assets (the “expense limits”). Unless Invesco
continues the fee waiver agreement, it will terminate on March 31, 2025 . (Prior
to April 1, 2024, the Fund's expense limits were as follows: 1.10%, 1.85%,
1.35%, 0.85%, 0.84% and 0.79% for Class A, Class C, Class R,
Class Y, Class R5
and Class R6 shares, respectively). During its term, the fee waiver agreement
cannot be terminated or amended to increase the expense limits without approval
of the Board of Trustees.
The
Example assumes that you invest $10,000 in the Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. This Example
does not include commissions and/or other forms of compensation that investors
may pay on transactions in Class Y and Class R6 shares. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating
expenses remain equal to the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement in the first year and the Total Annual Fund
Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions, your
costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
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| ||||
|
Class
C |
$ |
$ |
$ |
$ |
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|
Class
R |
$ |
$ |
$ |
$ |
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| ||||
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Class
Y |
$ |
$ |
$ |
$ |
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| ||||
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Class
R5 |
$ |
$ |
$ |
$ |
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|
Class
R6 |
$ |
$ |
$ |
$ |
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| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
C |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R |
$ |
$ |
$ |
$ |
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| ||||
|
Class
Y |
$ |
$ |
$ |
$ |
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| ||||
|
Class
R5 |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R6 |
$ |
$ |
$ |
$ |
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| ||||
Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in master limited partnership (MLP)
investments of issuers that are engaged in the transportation, storage,
processing, refining, marketing, exploration, production, and mining of minerals
and natural resources and in derivatives and other instruments that have
economic characteristics similar to such securities. The Fund seeks to achieve
its investment objective by normally investing substantially all of its net
assets in the equity securities of a minimum of 40 MLP investments. The Fund’s
MLP investments may include the following: MLPs structured as limited
partnerships (LPs) or limited liability companies (LLCs); MLPs that are taxed as
“C” corporations; businesses that operate and have the economic characteristics
of MLPs but are organized and taxed as “C” corporations; securities issued by
MLP affiliates; and private investments in public equities (PIPEs) issued by
MLPs.
The
Fund invests in MLP investments that primarily derive their revenue from businesses
engaged in the gathering, processing, transporting,
1 Invesco
SteelPath MLP Select 40 Fund
terminalling,
storing, distributing, or marketing of natural gas, natural gas liquids, crude
oil, refined products (including non-hydrocarbon based products) or other
hydrocarbons (Midstream MLP investments). While the Fund primarily invests in
Midstream MLP investments, it also may invest in MLP investments that primarily
derive their revenue from businesses engaging in or supporting the acquisition,
exploration and development, or extraction of crude oil, condensate, natural
gas, natural gas liquids, or other hydrocarbons (Upstream MLP investments) and
businesses engaging in the processing, treating, or refining of crude oil,
natural gas liquids or other hydrocarbons (Downstream MLP investments). The Fund
may invest in MLP investments of all market capitalization ranges. The Fund
concentrates its investments in the instruments of the group of industries that
comprise the energy sector.
The
Adviser relies on its disciplined investment process in determining investment
selection and weightings. This process includes a comparison of quantitative and
qualitative value factors that are developed through the Adviser’s proprietary
analysis and valuation models. To determine whether an investment meets its
criteria, the Adviser generally will perform a detailed fundamental analysis of
the underlying businesses owned and operated by potential MLP and energy
infrastructure portfolio companies. The Adviser seeks to invest in MLP
investments that it believes have, among other characteristics, sound business
fundamentals, a strong record of cash flow growth, distribution continuity, a
solid business strategy, a respected management team and which are not overly
exposed to changes in commodity prices. The Adviser will sell investments if it
determines that any of the above-mentioned characteristics have changed
materially from its initial analysis, or that quantitative or qualitative value
factors indicate that an investment is no longer earning a return commensurate
with its risk.
■
■
■
■
2 Invesco
SteelPath MLP Select 40 Fund
3 Invesco
SteelPath MLP Select 40 Fund
The
returns shown for periods ending on or prior to May 24, 2019 are those of the Class
A, Class C, Class Y and Class I shares of the predecessor fund. Class A, Class C
and Class I shares of the predecessor fund were reorganized into Class A, Class
C and Class R6 shares, respectively, of the
4 Invesco
SteelPath MLP Select 40 Fund
Fund, and Class Y
and Class W shares of the predecessor fund were reorganized into Class Y shares
of the Fund after the close of business on May 24, 2019. Class A, Class C, Class
Y and Class R6 shares’ returns of the Fund will be different from the returns of
the predecessor fund as they have different expenses. Performance for Class A
shares has been restated to reflect the Fund’s applicable sales charge. Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense
reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and capital gains
and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us .
Annual Total Returns
The bar chart does
not reflect sales loads. If it did, the annual total returns shown would be
lower.
|
Class
A |
Period
Ended |
Returns |
|
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|
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|
- |
Average Annual Total Returns (for the periods ended December 31, 2023)
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
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Class
A |
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Return
Before Taxes |
|
% |
% |
% |
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Return
After Taxes on Distributions |
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Return
After Taxes on Distributions and Sale of Fund
Shares |
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Class
C |
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Class
R |
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1 |
1 |
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Class
Y |
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Class
R5 |
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1 |
1 |
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Class
R6 |
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|
Alerian
MLP Index expenses
or taxes) |
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|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
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1
Management
of the Fund
Investment Adviser:
Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
Stuart
Cartner |
Portfolio
Manager |
2019
(predecessor fund 2010) |
|
| ||
Brian
Watson, CFA |
Portfolio
Manager |
2019
(predecessor fund 2010) |
|
| ||
Purchase
and Sale of Fund Shares
You may purchase,
redeem or exchange shares of the Fund on any business day through your financial
adviser or by telephone at 800-959-4246. Shares of the Fund, other than Class R5
and Class R6 shares, may also be purchased, redeemed or exchanged on any
business day through our website at www.invesco.com/us or by mail to Invesco
Investment Services, Inc., P.O. Box 219078, Kansas City, MO
64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts are as
follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser |
None |
None |
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None |
None |
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25 |
$25 |
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50 |
50 |
|
| ||
|
IRAs
and Coverdell ESAs |
250 |
25 |
|
| ||
|
All
other accounts |
1,000 |
50 |
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial investment
for Employer Sponsored Retirement and Benefit Plans investing through a
retirement platform that administers at least $2.5 billion in retirement plan
assets. All other Employer Sponsored Retirement and Benefit Plans must meet a
minimum initial investment of at least $1 million in each Fund in which it
invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares, the minimum
initial investment in each share class is $1 million, unless such investment is
made by (i) an investment company, as defined under the Investment Company Act
of 1940, as amended (1940 Act), that is part of a family of investment companies
which own in the aggregate at least $100 million in securities, or (ii) an
account established with a 529 college savings plan managed by Invesco, in which
case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through retail
omnibus accounts maintained by an intermediary, such as a broker, that (i)
generally charges an asset-based fee or commission in addition to those
described in this prospectus, and (ii) maintains Class R6 shares and makes them
available to retail investors.
Tax
Information
The Fund is taxed
as a regular corporation, or so-called Subchapter “C” corporation, for U.S.
federal, state and local income tax purposes. The Fund’s distributions generally
are taxable to you as ordinary income and/or tax-deferred returns of capital,
unless you are investing through a tax-advantaged arrangement, such as a 401(k)
plan, 529 college savings plans or individual retirement account, in which case
your distributions may be taxed as ordinary income when withdrawn from such
tax-advantaged account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund, the Fund’s distributor or its related companies may pay the
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson or financial adviser to recommend the Fund
over another investment. Ask your salesperson or financial adviser or visit your
financial intermediary’s website for more information.
5 Invesco
SteelPath MLP Select 40 Fund
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The Fund’s
investment objective is to seek total return. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder
approval.
Under
normal circumstances, the Fund invests at least 80% of its net assets (plus the
amount of any borrowings for investment purposes) in master limited partnership
(MLP) investments of issuers that are engaged in the transportation, storage,
processing, refining, marketing, exploration, production, and mining of minerals
and natural resources and in derivatives and other instruments that have
economic characteristics similar to such securities. The Fund seeks to achieve
its investment objective by normally investing substantially all of its net
assets in the equity securities of a minimum of 40 MLP investments. The Fund’s
MLP investments may include the following: MLPs structured as limited
partnerships (LPs) or limited liability companies (LLCs); MLPs that are taxed as
“C” corporations; businesses that operate and have the economic characteristics
of MLPs but are organized and taxed as “C” corporations; securities issued by
MLP affiliates; and private investments in public equities (PIPEs) issued by
MLPs.
The
Fund invests in MLP investments that primarily derive their revenue from businesses
engaged in the gathering, processing, transporting, terminalling, storing,
distributing, or marketing of natural gas, natural gas liquids, crude oil,
refined products (including non-hydrocarbon based products) or other
hydrocarbons (Midstream MLP investments). While the Fund primarily invests in
Midstream MLP investments, it also may invest in MLP investments that primarily
derive their revenue from businesses engaging in or supporting the acquisition,
exploration and development, or extraction of crude oil, condensate, natural
gas, natural gas liquids, or other hydrocarbons (Upstream MLP investments) and
businesses engaging in the processing, treating, or refining of crude oil,
natural gas liquids or other hydrocarbons (Downstream MLP investments). The Fund
may invest in MLP investments of all market capitalization ranges. The Fund
concentrates its investments in the instruments of the group of industries that
comprise the energy sector.
The
Adviser relies on its disciplined investment process in determining investment
selection and weightings. This process includes a comparison of quantitative and
qualitative value factors that are developed through the Adviser’s proprietary
analysis and valuation models. To determine whether an investment meets its
criteria, the Adviser generally will perform a detailed fundamental analysis of
the underlying businesses owned and operated by potential MLP and energy
infrastructure portfolio companies. The Adviser seeks to invest in MLP
investments that it believes have, among other characteristics, sound business
fundamentals, a strong record of cash flow growth, distribution continuity, a
solid business strategy, a respected management team and which are not overly
exposed to changes in commodity prices. The Adviser will sell investments if it
determines that any of the above-mentioned characteristics have changed
materially from its initial analysis, or that quantitative or qualitative value
factors indicate that an investment is no longer earning a return commensurate
with its risk.
In
anticipation of or in response to market, economic, political, or other
conditions, the
Fund’s portfolio managers may temporarily use a different investment strategy
for defensive purposes. If the Fund’s portfolio managers do so, different
factors could affect the Fund’s performance and the Fund may not achieve its
investment objective.
The
Fund’s investments in the types of securities and other investments described in this
prospectus vary from time to time, and, at any time, the Fund may not be
invested in all of the types of securities and other investments described in
this prospectus. The Fund may also invest in securities and other investments
not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments and
Risks” in the Fund’s SAI.
Risks
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, or adverse investor sentiment generally.
The value of the Fund’s investments may also go up or down due to factors that
affect an individual issuer or a particular industry or sector, such as changes
in production costs and competitive conditions within an industry. In addition,
natural or environmental disasters, widespread disease or other public health
issues, war, military conflict, acts of terrorism, economic crisis or other
events may have a significant impact on the value of the Fund’s investments, as
well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s
investment strategy. 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.
■
Market
Disruption Risks Related to Armed Conflict. As a result of
increasingly interconnected global economies
and
financial markets, armed conflict between countries or in a geographic region,
for example the current conflicts
between
Russia
and
Ukraine in Europe
and
Hamas and Israel in the
Middle
East,
has
the
potential to adversely impact the Fund’s investments. Such conflicts, and other
corresponding events, have had, and could continue to have, severe negative
effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative
impacts may be particularly acute in certain sectors.
The
timing
and duration of such conflicts, resulting sanctions, related events and other
implications cannot be predicted. The foregoing may result in a negative impact
on Fund performance and the value of an investment in the Fund, even beyond any
direct investment exposure the Fund may have to issuers located in or with
significant exposure to an impacted country or geographic
regions.
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 a limited liability company taxed as a partnership
under 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,
6 Invesco
SteelPath MLP Select 40 Fund
investor sentiment
towards MLPs, changes in a particular issuer’s financial condition, or
unfavorable or unanticipated poor performance of a particular issuer. Prices of
common units of individual MLPs and other equity securities also can be affected
by fundamentals unique to the partnership or company, including earnings power
and coverage ratios. In the event of liquidation, common unit holders are
intended to have a preference to the remaining assets of the issuer over holders
of subordinated units. Subordinated units generally do not provide arrearage
rights.
■
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. Rather, each
partner is allocated a share of the partnership’s income, gains, losses,
deductions and expenses. A change in current tax law, or a change in the
underlying business mix of a given MLP, could result in an MLP being classified
as a corporation for U.S. federal income tax purposes, which would result in
such MLP being required to pay U.S. federal income tax on its taxable income.
This classification would have the effect of reducing the amount of cash
available for distribution by the MLP. Thus, if any of the MLPs owned by the
Fund were treated as a corporation for U.S. federal income tax purposes, it
could result in a reduction of the value of the Fund’s investment, and
consequently your investment in the Fund and lower income.
MLPs taxed as partnerships file a partnership tax return for U.S. federal, state and local income tax purposes and communicate to each investor in such MLP the investor’s allocable share of the MLP’s income, gains, losses, deductions and expenses via a “Schedule K-1.” 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. An MLP might need to amend its partnership tax return and, in turn, send amended Schedules K-1 to investors in the MLP, such as the Fund. When necessary, the Fund will send you a corrected Form 1099 to reflect Schedule K-1 information reclassified by an MLP, which could, in turn, require you to amend your federal, state or local tax returns. To the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund's adjusted tax basis in the interests of the MLP may be reduced, which will result in an increase in an amount of income or gain (or decrease in the amount of loss) that will be recognized by the Fund for tax purposes upon the sale of any such interests or upon subsequent distributions in respect of such interests. Changes in the laws, regulations or related interpretations relating to the Fund's investments in MLPs could increase the Fund's expenses, reduce its cash distributions, negatively impact the value of an investment in an MLP, or otherwise impact the Fund's ability to implement its investment strategy.
MLPs taxed as partnerships file a partnership tax return for U.S. federal, state and local income tax purposes and communicate to each investor in such MLP the investor’s allocable share of the MLP’s income, gains, losses, deductions and expenses via a “Schedule K-1.” 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. An MLP might need to amend its partnership tax return and, in turn, send amended Schedules K-1 to investors in the MLP, such as the Fund. When necessary, the Fund will send you a corrected Form 1099 to reflect Schedule K-1 information reclassified by an MLP, which could, in turn, require you to amend your federal, state or local tax returns. To the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund's adjusted tax basis in the interests of the MLP may be reduced, which will result in an increase in an amount of income or gain (or decrease in the amount of loss) that will be recognized by the Fund for tax purposes upon the sale of any such interests or upon subsequent distributions in respect of such interests. Changes in the laws, regulations or related interpretations relating to the Fund's investments in MLPs could increase the Fund's expenses, reduce its cash distributions, negatively impact the value of an investment in an MLP, or otherwise impact the Fund's ability to implement its investment strategy.
Energy
Infrastructure and Energy-Related Industries Sector Risk. The Fund will
concentrate its investments in the instruments of the group of industries that
comprise the energy sector. Energy infrastructure MLPs are subject to risks
specific to the energy and energy-related industries, including, but not limited
to: fluctuations in commodity prices may impact the volume of energy commodities
transported, processed, stored or distributed; reduced volumes of natural gas or
other energy commodities available for transporting, processing, storing or
distributing may affect the profitability of an MLP; slowdowns in new
construction and acquisitions can limit growth potential; reduced demand for
oil, natural gas and petroleum products, particularly for a sustained period of
time, could adversely affect MLP revenues and cash flows; depletion of natural
gas reserves or other commodities, if not replaced, could impact an MLP’s
ability
to make
distributions; changes in the regulatory environment could adversely affect the
profitability of MLPs; extreme weather and environmental hazards could impact
the value of MLP securities; rising interest rates could result in higher costs
of capital and drive investors into other investment opportunities; and threats
of attack by terrorists on energy assets could impact the market for
MLPs.
Changes
in worldwide energy prices, exploration, production spending, government
regulation, world events, local and international politics, and economic
conditions can affect the Fund's investments. In addition, MLPs in the energy
infrastructure and energy-related industries companies are at an increased risk
of civil liability and environmental damage claims, and are also subject to the
risk of loss from terrorism and natural disasters. Commodity price volatility,
imposition of import controls, increased competition, depletion of resources,
development of alternative energy sources, and technological developments may
also impact the Fund's investments. The Fund's investments may be highly
volatile and subject to swift price fluctuations. Energy markets are subject to
both short- and long-term trends that impact demand for and supply of energy
commodities. A decrease in the production of energy commodities or a decrease in
the volume of such commodities available may adversely impact the financial
performance of companies operating in these industries. In addition, significant
declines in the price of oil may contribute to significant market volatility,
which may adversely affect the Fund's performance.
MLP
Common Units Risk. The common units
of many MLPs are listed and traded on U.S. securities exchanges, including the
New York Stock Exchange, Inc. (NYSE) and the Nasdaq National Market System
(Nasdaq). MLP common units can be purchased through open market transactions and
underwritten offerings, but may also be acquired through direct placements and
privately negotiated transactions. Holders of MLP common units typically have
very limited control and voting rights. Holders of such common units are
typically entitled to receive the minimum quarterly distribution (MQD),
including arrearage rights, from the issuer. Generally, an MLP must pay (or set
aside for payment) the MQD to holders of common units before any distributions
may be paid to subordinated unit holders. In addition, incentive distributions
are typically not paid to the general partner or managing member unless the
quarterly distributions on the common units exceed specified threshold levels
above the MQD. In the event of liquidation, common unit holders are intended to
have a preference to the remaining assets of the issuer over holders of
subordinated units. MLPs also issue different classes of common units that may
have different voting, trading, and distribution rights.
MLP
Affiliates Risk. The Fund may
invest in the securities issued by affiliates of MLPs, including the general
partners or managing members of MLPs and companies that own MLP general partner
interests that are energy infrastructure companies. Such issuers may be
organized and/or taxed as corporations and therefore may not offer the
advantageous tax characteristics of MLP units. The Fund may purchase such other
MLP securities through market transactions, but may also do so through direct
placements. The Fund may also invest in MLP I-Shares, which represent an
indirect ownership interest in MLP common units. MLP I-Shares differ from MLP
common units primarily in that, instead of receiving cash distributions, holders
of MLP I-Shares receive distributions in the form of additional I-Shares.
Issuers of MLP I-Shares are treated as corporations and not partnerships for tax
purposes. MLP affiliates also include publicly traded limited liability
companies that own, directly or indirectly, general partner interests of
MLPs.
MLP
Issuer Risk. The value of an
MLP security may decline for a number of reasons which directly relate to the
issuer, such as management performance, financial leverage and reduced demand
for the issuer’s products or services.
Small-
and Mid-Capitalization Companies Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established
7 Invesco
SteelPath MLP Select 40 Fund
companies. Stocks
of small- and mid-capitalization companies tend to be more vulnerable to
changing market conditions, may have little or no operating history or track
record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s
earnings expectations and may experience more abrupt and erratic price
movements. Smaller companies’ securities often trade in lower volumes and in
many instances, are traded over-the-counter or on a regional securities
exchange, where the frequency and volume of trading is substantially less than
is typical for securities of larger companies traded on national securities
exchanges. Therefore, the securities of smaller companies may be subject to
wider price fluctuations and it might be harder for the Fund to dispose of its
holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or
understanding of the value of smaller company securities (this is sometimes
referred to as “price arbitrage”), which could interfere with the efficient
management of the Fund. Since small and mid-cap companies typically reinvest a
high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a
substantial period of time to realize a gain on an investment in a small- or
mid-cap company, if any gain is realized at all. The relative sizes of companies
may change over time as the securities market changes, and the Fund is not
required to sell the securities of companies whose market capitalizations have
grown or decreased due to market fluctuations.
Deferred
Taxes Risk. The Fund is
treated as a regular corporation, or C corporation, for U.S. federal income tax
purposes. This differs from most investment companies, which elect to be treated
as “regulated investment companies” under the Code in order to avoid paying
entity level income taxes. As a C corporation, the Fund will incur tax expenses.
In calculating the Fund’s daily net asset value, it will, among other things,
account for its deferred tax liability and/or asset balances and assess whether
to record a valuation allowance.
The
Fund will accrue, in accordance with generally accepted accounting principles, a
deferred income tax liability, at the currently applicable effective statutory
U.S. federal income tax rate plus an estimated state and local income tax rate,
for its future tax liability associated with the capital appreciation of its
investments and the distributions received by the Fund considered to be return
of capital and for any net operating gains. The Fund’s current and deferred tax
liability, if any, will depend upon the Fund’s net investment gains and losses
and realized and unrealized gains and losses on investments and therefore could
vary greatly from year to year and from day-to-day depending on the nature of
the Fund’s investments, the performance of those investments and general market
conditions. Therefore, any estimate of current taxes and deferred income tax
liability and/or asset balances cannot be reliably predicted from year to year.
Any deferred tax liability balance will reduce the Fund’s NAV. Upon a Fund’s
sale of a portfolio security, the Fund will be liable for previously deferred
taxes. If the Fund is required to sell portfolio securities to meet redemption
requests, the Fund may recognize gains for U.S. federal, state and local income
tax purposes, which would result in corporate income taxes imposed on the
Fund.
As
a regular C corporation, the Fund will accrue, in accordance with generally accepted
accounting principles, a deferred tax asset balance, which reflects an estimate
of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV.
To the extent the Fund has a net deferred tax asset balance, it will assess, in
accordance with generally accepted accounting principles, whether a valuation
allowance, which would offset the value of the Fund’s deferred tax asset
balance, is required. The Fund will assess a valuation allowance to reduce the
deferred tax asset balance if, based on the weight of all available evidence,
both negative and positive, it is more likely than not that the deferred tax
asset will not be realized. The
Fund will use
judgment in considering the relative impact of negative and positive evidence.
The weight given to the potential effect of negative and positive evidence will
be commensurate with the extent to which such evidence can be objectively
verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of
statutory carry forward periods and the associated risk that operating loss and
capital loss carry forwards may be limited as a result of shareholder
transactions or expire unused, and unrealized gains and losses on investments.
Consideration is also given to market cycles, the severity and duration of
historical deferred tax assets, the impact of redemptions, and the level of MLP
distributions. The Fund will assess whether a valuation allowance is required to
offset any deferred tax asset balance in connection with the calculation of the
Fund’s NAV per share each day; however, to the extent the final valuation
allowance differs from the estimates of the Fund used in calculating the Fund’s
daily NAV, the application of such final valuation allowance could have a
material impact on the Fund’s NAV.
The
following example illustrates two hypothetical trading days of the Fund and the tax
effect upon the daily NAV compared to the individual securities. The examples
assume a 23.0% deferred tax calculation (maximum corporate tax rate of 21% in
effect for 2024 plus estimated state tax rate of 2.0%, net of federal benefit).
They do not reflect the impact, if any, of any valuation allowances on deferred
tax assets that management may deem appropriate.
Actual
income tax expense, if any, will be incurred over many years, depending upon
whether and when investment gains and losses are realized, the then-current
basis of a Fund’s assets and other factors. Upon the sale of an MLP security,
the Fund will be liable for previously deferred taxes, if any. As a result, the
Fund’s actual tax liability could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax liability and/or asset balances will be estimated
using
estimates of effective tax rates expected to apply to taxable income in
8 Invesco
SteelPath MLP Select 40 Fund
the years such
balances are realized. Changes in effective tax rates applicable to a C
corporation, such as the reduction in the corporate rate effective January 1,
2018, will affect the Fund’s estimates of its deferred tax liability and/or
asset balances for purposes of financial statement reporting and determining its
NAV. Therefore, actual tax rates applicable to the future years in which such
balances are realized may be materially higher or lower than such estimates. The
Fund will rely to some extent on information provided by MLPs in determining the
extent to which distributions received from MLPs constitute a return of capital,
which information may not be provided to the Fund on a timely basis, in order to
estimate the Fund’s deferred tax liability and/or asset balances for purposes of
financial statement reporting and determining its NAV. If such information is
not received from such MLPs on a timely basis, the Fund will estimate the extent
to which distributions received from MLPs constitute a return of capital based
on average historical tax characterization of distributions made by MLPs. The
Fund makes estimates regarding its deferred tax liability and/or asset balances;
however, the daily estimate of the Fund’s deferred tax liability and/or asset
balances used to calculate the Fund’s NAV could vary significantly from the
Fund’s actual tax liability, and as a result, the determination of the Fund’s
actual tax liability may have a material impact on the Fund’s NAV. The Fund’s
daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any
applicable valuation allowance, based on all information available to the Fund
at such time. From time to time, the Fund (or Adviser) may modify its estimates
or assumptions regarding its deferred tax liability and/or asset balances and
any applicable valuation allowance as new information becomes available.
Modifications of the Fund’s estimates or assumptions regarding its deferred tax
liability and/or asset balances and any applicable valuation allowance, changes
in generally accepted accounting principles or related guidance or
interpretations thereof, limitations imposed on or expiration of the Fund’s net
operating losses and capital loss carryovers (if any) and changes in applicable
tax law could result in increases or decreases in the Fund’s NAV per share,
which could be material. Moreover, changes in tax laws, rates or regulations, or
future interpretations of such laws or regulations, could adversely affect the
Fund or the MLPs in which the Fund invests. Legislation also could negatively
impact the amount, timing and/or tax characterization of distributions received
by Fund shareholders.
Shareholders
who redeem their shares at a NAV that is based on estimates of the
Fund's current taxes and deferred tax liability and/or asset balances may
benefit at the expense of remaining shareholders (or remaining shareholders may
benefit at the expense of redeeming shareholders) if the estimates are later
revised or ultimately differ from the Fund's actual tax liability and/or asset
balances.
Unexpected
significant decreases in cash distributions from the Fund’s MLP investments or
significant declines in the fair value of its investments may change the Fund’s
assessment regarding the recoverability of its deferred tax assets and may
result in a valuation allowance. If a valuation allowance is required to reduce
any deferred tax asset in the future, it could have a material impact on the
Fund’s NAV and results of operations with respect to the Fund’s shareholders in
the period it is recorded, even though the shareholders at such time might not
have held shares in the Fund at the time the deferred tax asset had been
established.
Distribution
Policy Risk. The Fund’s
dividend distribution policy is intended to provide investors with a dividend
distribution rate similar to owning MLPs directly. Under the policy, the Fund
generally pays out dividends that over time approximate the distributions
received from the Fund’s portfolio investments based on, among other
considerations, distributions the Fund actually received from portfolio
investments, distributions it would have received if it had been fully invested
at all times, and estimated future cash flows. Such dividends are not tied to
the Fund’s investment income and may not represent yield or investment return on
the Fund’s portfolio. To the extent that the dividends paid exceed the
distributions the Fund receives from its underlying investments, the Fund’s
assets will
decline. A decline in the Fund’s assets may also result in an increase in the
Fund’s expense ratio and over time the dividends paid in excess of distributions
received could erode the Fund’s net asset value. The Adviser seeks to generate
positive investment returns (net of fund expenses) to offset the effect of
dividends paid in excess of distributions from underlying investments. The Fund
tactically employs cash to seek to take advantage of market opportunities,
which, if successfully implemented, may offset or exceed the NAV impact of
paying dividends as if the Fund had been fully invested and held no cash. There
is no guarantee that investment returns and the tactical deployment of cash will
produce such a result, however, and the tactical use of cash causes the Fund’s
assets to be less fully invested than would otherwise be the case. There is also
the risk that a decline in the financial markets, particularly the energy and
related industry markets, could reduce investment return and that the
assumptions underlying the estimates of cash flows from portfolio holdings could
be inaccurate. As such, the Fund’s tendency to pay a consistent dividend may
change, and the Fund’s level of distributions may increase or
decrease.
No
assurance can be given as to whether or to what extent the Fund’s distributions will
be characterized as dividend income or as a return of capital, and the character
of distributions may vary from year to year. In general, a distribution will
constitute a return of capital, rather than a dividend, to the extent it exceeds
the Fund’s current and accumulated earnings and profits. Return of capital
reduces a shareholder’s adjusted cost basis in the Fund’s shares. This, in turn,
affects the amount of any capital gain or loss realized by the shareholder upon
selling the Fund’s shares and is not currently subject to tax unless the
shareholder’s adjusted cost basis has been reduced to zero. Once a shareholder’s
adjusted cost basis has been reduced to zero, return of capital will be treated
as capital gains. A return of capital does not reflect positive investment
performance.
The
Fund may derive substantially all or a portion of its cash flow from
investments in
equity or debt securities of MLPs. The amount of cash that the Fund will have
available to pay or distribute to you depends entirely on the ability of the
MLPs that the Fund owns to make distributions to its partners and the tax
character of those distributions. Neither the Fund nor the Adviser has control
over the actions of underlying MLPs. The amount of cash that each individual MLP
can distribute to its partners will depend on the amount of cash it generates
from operations, which will vary from quarter to quarter depending on factors
affecting the energy infrastructure market generally and on factors affecting
the particular business lines of the MLP. Available cash will also depend on the
MLPs' level of operating costs (including incentive distributions to the general
partner), level of capital expenditures, debt service requirements, acquisition
costs (if any), fluctuations in working capital needs and other factors. The
Fund's investments may not distribute the expected or anticipated levels of
cash, resulting in the risk that the Fund may not be able to meet its stated
investment objective.
Regulatory
Risk.
The Fund’s investment strategy subjects it to certain regulatory risks. Changes
in the laws, regulations and/or related interpretations relating to the Fund’s
tax treatment as a C corporation or investments in MLPs or other instruments
could increase the Fund’s expenses, reduce its cash distributions, negatively
impact the value of an investment in an MLP, or otherwise impact the Fund’s
ability to implement its investment strategy. The tax benefit expected to be
derived from the Fund’s investments is largely dependent on the MLPs in which it
invests being treated as partnerships for federal income tax purposes. A change
in current tax law, or a change in the underlying business mix of a given MLP,
could result in an MLP being treated as a corporation for U.S. federal income
tax purposes, which would result in such MLP being required to pay U.S. federal
income tax on its taxable income. The classification of an MLP as a corporation
for U.S. federal income tax purposes would have the effect of reducing the
amount of cash available for distribution by the MLP. Thus, if any of the MLPs
owned by the Fund were treated as a corporation for U.S. federal income tax
purposes, it could result in a reduction of the value of the Fund’s investment
in the MLP, and consequently a shareholder’s investment
9 Invesco
SteelPath MLP Select 40 Fund
in the Fund and
lower income. Because MLP’s assets are heavily regulated by federal and state
governments an MLP’s profitability could be adversely affected by changes in the
regulatory environment.
Private
Investments in Public Equity (PIPEs) Risk. PIPEs are equity
securities issued in a private placement by companies that have outstanding,
publicly traded equity securities of the same class. Shares in PIPEs generally
are not registered with the Securities and Exchange Commission until after a
certain time period from the date the private sale is completed. PIPE
transactions will generally result in the Fund acquiring either restricted stock
or an instrument convertible into restricted stock. As with investments in other
types of restricted securities, such an investment may be illiquid. The Fund’s
ability to dispose of securities acquired in PIPE transactions may depend upon
the registration of such securities for resale. Any number of factors may
prevent or delay a proposed registration. Alternatively, it may be possible for
securities acquired in a PIPE transaction to be resold in transactions exempt
from registration in accordance with Rule 144 under the Securities Act of 1933,
or otherwise under the federal securities laws. There is no guarantee, however,
that an active trading market for the securities will exist at the time of
disposition of the securities, and the lack of such a market could hurt the
market value of the Fund’s investments. As a result, even if the Fund is able to
have securities acquired in a PIPE transaction registered or sell such
securities through an exempt transaction, the Fund may not be able to sell all
the securities on short notice, and the sale of the securities could lower the
market price of the securities.
Cash/Cash
Equivalents Risk. To the extent the
Fund holds cash or cash equivalents rather than securities or other instruments
in which it primarily invests, the Fund risks losing opportunities to
participate in market appreciation and may experience potentially lower returns
than the Fund’s benchmark or other funds that remain fully
invested.
Investing
in Stocks Risk. Common stock
represents an ownership interest in a company. It ranks below preferred stock
and debt securities in claims for dividends and in claims for assets of the
issuer in a liquidation or bankruptcy. Common stocks may be exchange-traded or
over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock markets.
Stocks and other equity securities fluctuate in price in response to changes to
equity markets in general. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of
the equity or fixed-income markets may have unexpected negative effects on other
market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction at the
same time. However, individual stock prices tend to go up and down more
dramatically than those of certain other types of investments, such as bonds. A
variety of factors can negatively affect the price of a particular company’s
stock. These factors may include, but are not limited to: poor earnings reports,
a loss of customers, litigation against the company, general unfavorable
performance of the company’s sector or industry, or changes in government
regulations affecting the company or its industry. To the extent that securities
of a particular type are emphasized (for example foreign stocks, stocks of
small- or mid-cap companies, growth or value stocks, or stocks of companies in a
particular industry), fund share values may fluctuate more in response to events
affecting the market for those types of securities.
Private
Equity and Debt Investments Risk. The Fund can
invest in private equity and debt investments, including traditional private
equity control positions and minority investments in master limited partnerships
(MLPs) and energy infrastructure companies. Private equity and debt investments
involve a high degree of business and financial risk and can result in
substantial or complete losses. Some portfolio companies in which the Fund may
invest may be operating at a loss or with substantial
variations in
operating results from period to period and may need substantial additional
capital to support expansion or to achieve or maintain competitive positions.
Such companies may face intense competition, including competition from
companies with much greater financial resources, much more extensive
development, production, marketing and service capabilities and a much larger
number of qualified managerial and technical personnel. There is no assurance
that the marketing efforts of any particular portfolio company will be
successful or that its business will succeed. Additionally, privately held
companies are not subject to Securities and Exchange Commission reporting
requirements, are not required to maintain their accounting records in
accordance with generally accepted accounting principles, and are not required
to maintain effective internal controls over financial reporting. As a result,
timely or accurate information may at times not be readily available about the
business, financial condition and results of operations of the privately held
companies in which the Fund invests. Private debt investments also are subject
to interest rate risk, credit risk and duration risk.
Preferred
Securities Risk. Preferred
securities are subject to issuer-specific and market risks applicable generally
to equity securities. Preferred stock has a set dividend rate and ranks ahead of
common stocks and behind debt securities in claims for dividends and for assets
of the issuer in a liquidation or bankruptcy. Preferred securities also may be
subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more
senior securities. For this reason, the value of preferred securities will
usually react more strongly than bonds and other debt securities to actual or
perceived changes in the company’s financial condition or prospects. Preferred
securities may be less liquid than many other securities, such as common stocks,
and generally offer no voting rights with respect to the issuer.
Derivatives
Risk. A derivative is an
instrument whose value 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, which are described below.
■
Counterparty
Risk. Certain
derivatives do not trade on an established exchange (referred to as
over-the-counter (OTC) derivatives) and are simply financial contracts between
the Fund and a counterparty. When the Fund is owed money on an OTC derivative,
the Fund is dependent on the counterparty to pay or, in some cases, deliver the
underlying asset, unless the Fund can otherwise sell its derivative contract to
a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and
ability to pay or perform) may be negatively impacted by factors affecting
financial institutions generally. In addition, in the event that a counterparty
becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that
the Fund has on deposit with the counterparty could be delayed or impaired. For
derivatives traded on a centralized exchange, the Fund generally is dependent
upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on
derivative instruments for which the Fund is owed money.
■
Leverage
Risk. Many derivatives
do not require a payment up front equal to the economic exposure created by
holding a position in the derivative, which creates a form of leverage. 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. In
addition, some derivatives have the potential for unlimited loss, regardless of
the size of the Fund’s initial investment. Leverage may therefore make the
Fund’s returns more volatile and increase the risk of loss. In certain market
conditions, losses on derivative
10 Invesco
SteelPath MLP Select 40 Fund
instruments can
grow larger while the value of the Fund’s other assets fall, resulting in the
Fund’s derivative positions becoming a larger percentage of the Fund’s
investments.
■
Liquidity
Risk. There is a smaller
pool of buyers and sellers for certain derivatives, particularly OTC
derivatives, than more traditional investments such as stocks. These buyers and
sellers are often financial institutions that may be unable or unwilling to buy
or sell derivatives during times of financial or market stress. Derivative
instruments may therefore be less liquid than more traditional investments and
the Fund may be unable to sell or exit 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. To the extent that the Fund is unable to exit a derivative position
because of market illiquidity, the Fund may not be able to prevent further
losses of value in its derivatives holdings and the liquidity of the Fund and
its ability to meet redemption requests may be impaired to the extent that a
substantial portion of the Fund’s otherwise liquid assets must be used as
margin. Another consequence of illiquidity is that the Fund may be required to
hold a derivative instrument to maturity and take or make delivery of the
underlying asset that the Adviser would otherwise avoid.
■
Regulatory
Risk.
Changes in government regulation of derivative instruments could affect the
character, timing and amount of the Fund’s taxable income or gains, and may
limit or prevent the Fund from using certain types of derivative instruments as
a part of its investment strategy, which could make the investment strategy more
costly to implement or require the Fund to change its investment
strategy.
■
Futures
Contracts Risk. The volatility of
futures contracts prices has been historically greater than the volatility of
stocks and bonds. The liquidity of the futures market depends on participants
entering into offsetting transactions rather than making or taking delivery. To
the extent participants decide to make or take delivery, liquidity in the
futures market could be reduced. In addition, futures exchanges often impose a
maximum permissible price movement on each futures contract for each trading
session. The Fund may be disadvantaged if it is prohibited from executing a
trade outside the daily permissible price movement.
■
Options
Risk.
If the Fund sells a put option, there is a risk that the Fund may be required to
buy the underlying investment at a disadvantageous price. If the Fund sells a
call option, there is a risk that the Fund may be required to sell the
underlying investment at a disadvantageous price. If the Fund sells a call
option on an investment that the Fund owns (a “covered call”) and the investment
has increased in value when the option is exercised, the Fund will be required
to sell the investment at the call price and will not be able to realize any of
the investment’s value above the call price. Options may involve economic
leverage, which could result in greater price volatility than other
investments.
■
Swap
Transactions Risk. Under U.S.
financial reform legislation enacted in 2010, certain types of swaps are
required to be executed on a regulated market and cleared through a central
clearing house counterparty, which may entail further risks and costs for the
Fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally
cleared. In a centrally cleared swap, immediately following execution of the
swap agreement, the swap agreement is submitted for clearing to a central
clearing house counterparty, and the Fund faces the central clearing house
counterparty by means of an account with a futures commission merchant that is a
member of the clearing house.
■
Other
Risks. Compared to other
types of investments, derivatives may be harder to value and may also be less
tax efficient, as
described under the
“Taxes” section of the prospectus. In addition, changes in government regulation
of derivative instruments could affect the character, timing and amount of the
Fund’s taxable income or gains, and may limit or prevent the Fund from using
certain types of derivative instruments as a part of its investment strategy,
which could make the investment strategy more costly to implement or require the
Fund to change its investment strategy. Derivatives strategies may not
always be successful. For example, to the extent that the Fund uses derivatives
for hedging or to gain or limit exposure to a particular market or market
segment, there may be imperfect correlation between the value of the derivative
instrument and the value of the instrument being hedged or the relevant market
or market segment, in which case the Fund may not realize the intended benefits.
There is also the risk that during adverse market conditions, an instrument
which would usually operate as a hedge provides no hedging benefits at all. The
Fund’s use of derivatives may be limited by the requirements for taxation of the
Fund as a regulated investment company.
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. There can be
no guarantee that the Adviser’s investment techniques or investment decisions
will produce the desired results. Additionally, legislative, regulatory, or tax
developments may affect the investments or investment strategies available to
the Adviser in connection with managing the Fund, which may also adversely
affect the ability of the Fund to achieve its investment objective.
Portfolio
Holdings
A description of
Fund policies and procedures with respect to the disclosure of Fund portfolio
holdings is available in the SAI, which is available at
www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco Advisers,
Inc. serves as the Fund’s investment adviser. The Adviser manages the investment
operations of the Fund as well as other investment portfolios that encompass a
broad range of investment objectives, and has agreed to perform or arrange for
the performance of the Fund’s day-to-day management. The Adviser is located at
1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as
successor in interest to multiple investment advisers, has been an investment
adviser since 1976.
Sub-Advisers. Invesco has
entered into one or more Sub-Advisory Agreements with certain affiliates to
serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the
Sub-Advisers from time to time to provide discretionary investment management
services, investment advice, and/or order execution services to the Fund. The
Sub-Advisers and the Sub-Advisory Agreements are described in the
SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain
conditions, to enter into new sub-advisory agreements with affiliated or
unaffiliated sub-advisers on behalf of the Fund without shareholder approval.
The exemptive relief also permits material amendments to existing sub-advisory
agreements with affiliated or unaffiliated sub-advisers (including the
Sub-Advisory Agreements with the Sub-Advisers) without shareholder approval.
Under this structure, the Adviser has ultimate responsibility, subject to
oversight of the Board, for overseeing such sub-advisers and recommending to the
Board their hiring, termination, or replacement. The structure does not permit
investment advisory fees paid by the Fund to be increased without shareholder
approval, or change the Adviser's obligations under the investment advisory
agreement, including
11 Invesco
SteelPath MLP Select 40 Fund
the Adviser's
responsibility to monitor and oversee sub-advisory services furnished to the
Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With respect to the
Fund, the Adviser has claimed an exclusion from the definition of “commodity
pool operator” (CPO) under the Commodity Exchange Act (CEA) and the rules of the
Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to
CFTC registration or regulation as a CPO. In addition, the Adviser is relying
upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the
Fund.
The
terms of the CPO exclusion require the Fund, among other things, to adhere to
certain limits on its investments in “commodity interests.” Commodity interests
include commodity futures, commodity options and swaps, which in turn include
non-deliverable forwards. The Fund is permitted to invest in these instruments
as further described in the Fund’s SAI. However, the Fund is not intended as a
vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on
these exclusions, or the Fund, its investment strategies or this
prospectus.
Adviser
Compensation
During the fiscal
year ended November 30, 2023, the Adviser received compensation of 0.66% of the
Fund's average daily net assets, after fee waiver and/or expense reimbursement,
if any. The advisory fee payable by the Fund shall be reduced by any amounts
paid by the Fund under the administrative services agreement with the
Adviser.
A
discussion regarding the basis for the Board’s approval of the investment advisory
agreement and investment sub-advisory agreements of the Fund is available in the
Fund’s most recent annual or semi-annual report to shareholders.
Portfolio
Managers
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Fund’s portfolio:
■
Stuart Cartner,
Portfolio Manager, who has been responsible for the Fund since 2019 and has been
associated with Invesco and/or its affiliates since 2019. Prior to the
commencement of the Fund’s operations, Mr. Cartner managed the predecessor fund
since 2010 and was associated with OppenheimerFunds, a global asset management
firm, since 2012.
■
Brian Watson, CFA,
Portfolio Manager, who has been responsible for the Fund since 2019 and has been
associated with Invesco and/or its affiliates since 2019. Prior to the
commencement of the Fund’s operations, Mr. Watson managed the predecessor fund
since 2010 and was associated with OppenheimerFunds, a global asset management
firm, since 2012.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and
information regarding other accounts managed.
Other Information
Sales
Charges
Purchases of Class
A shares of the Fund are subject to the maximum 5.50% initial sales charge as
listed under the heading “Category I Initial Sales Charges” in the “Shareholder
Account Information—Initial Sales Charges (Class A Shares Only)” section of the
prospectus. Purchases of Class C shares are subject to a contingent deferred
sales charge (CDSC) if you sell Class C shares within one year of purchase;
however, the CDSC shall not apply to the purchases of Class C shares where the
selling broker-dealer was not paid a commission at the time of purchase. For
more
information on
CDSCs, see the “Shareholder Account Information—Contingent Deferred Sales
Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The Fund currently
anticipates making distributions to its shareholders monthly in an amount that
is approximately equal to the distributions the Fund receives from its
investments, including the MLPs in which it invests. The amounts the Fund
actually distributes are based on estimates of the amounts the Fund would
receive from the MLPs if the Fund was 100% invested at all times and held no
cash. The investment adviser seeks to generate positive investment returns net
of Fund expenses that will exceed and therefore offset the NAV impact of
dividends the Fund pays in excess of distributions it receives from its
investments. There is no guarantee, however, that the Fund’s investment returns
will exceed Fund expenses by an amount sufficient to offset the NAV impact of
dividends paid in excess of distributions received. The Fund is not required to
make such distributions and, consequently, the Fund could decide, at its
discretion, not to make such distributions or not to make distributions in the
amount described above because of market or other conditions affecting or
relevant to the Fund.
The
Fund anticipates that, due to the tax characterization of cash distributions made
by MLPs, a portion of its distributions to shareholders may consist of return of
capital for U.S. federal income tax purposes. The Fund may also make
distributions of dividend income.
Unlike
the MLPs in which the Fund invests, the Fund is not a pass through entity.
Consequently, the tax characterization of the distributions paid by the Fund may
differ greatly from those of the MLPs in which the Fund invests. The Fund’s
ability to meet its investment objective will depend, in part, on the character
and amount of distributions it receives from such MLP investments. The Fund will
have no control over the timing of the distributions it receives from its MLP
investments because such MLPs have the ability to modify their distribution
policies from time to time generally without input from or the approval of the
Fund.
12 Invesco
SteelPath MLP Select 40 Fund
Financial Highlights
The financial
highlights information presented for the Fund includes the financial history of
the predecessor fund, which was reorganized into the Fund after the close of
business on May 24, 2019. The financial highlights show the Fund’s and
predecessor fund’s financial history for the past five fiscal years or, if
shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The
financial highlights table is intended to help you understand the Fund’s and the
predecessor fund’s financial performance. Certain information reflects financial
results for a single Fund share.
The
total returns in the table represent the rate that an investor would
have
earned (or lost) on an investment in the Fund or predecessor fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, whose report, along with the Fund’s financial statements, is
included in the Fund’s annual report, which is available upon
request.
|
|
Years
Ended November 30, | ||||
|
Class
A |
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$6.47 |
$5.37 |
$4.18 |
$6.14 |
$7.36 |
|
Net
investment income (loss)(a) |
(0.00
) |
(0.00
) |
(0.01
) |
(0.03
) |
(0.03
) |
|
Return
of capital(a) |
0.32 |
0.31 |
0.28 |
0.35 |
0.43 |
|
Net
realized and unrealized gains (losses) |
0.95 |
1.25 |
1.38 |
(1.69
) |
(0.91
) |
|
Total
from investment operations |
1.27 |
1.56 |
1.65 |
(1.37
) |
(0.51
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.59
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.12
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.71
) |
|
Net
asset value, end of period |
$7.27 |
$6.47 |
$5.37 |
$4.18 |
$6.14 |
|
Total
return(b) |
20.66
% |
29.87
% |
40.08
% |
(21.63
)% |
(7.89
)% |
|
Net
assets, end of period (000’s omitted) |
$438,852 |
$369,159 |
$287,740 |
$205,529 |
$304,235 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before
taxes |
1.18
% |
1.20
% |
1.25
% |
1.26
% |
1.20
% |
|
Expense
(waivers) |
(0.04
)% |
(0.05
)% |
(0.07
)% |
(0.07
)% |
(0.06
)% |
|
With
fee waiver and/or expense reimbursement, before taxes(c) |
1.14
% |
1.15
% |
1.18
% |
1.19
% |
1.14
% |
|
Deferred
tax expense (benefit)(d) |
5.44
% |
1.96
% |
—
% |
—
% |
—
% |
|
With
fee waivers and/or expense reimbursements, after
taxes |
6.58
% |
3.11
% |
1.18
% |
1.19
% |
1.14
% |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
(0.25
)% |
(0.71
)% |
(0.21
)% |
(0.65
)% |
(0.45
)% |
|
Net
of expense (waivers) and before deferred tax benefit
(expense) |
(0.21
)% |
(0.66
)% |
(0.15
)% |
(0.58
)% |
(0.39
)% |
|
Deferred
tax benefit (expense)(e) |
0.13
% |
0.62
% |
—
% |
—
% |
—
% |
|
Ratio
of net investment income (loss), after taxes |
(0.08
)% |
(0.04
)% |
(0.15
)% |
(0.58
)% |
(0.39
)% |
(a)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(b)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(c)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 1.10%, 1.10%, 1.10%, 1.10% and 1.10%,
for the years ended November 30, 2023, 2022, 2021, 2020
and 2019,
respectively.
(d)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(e)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
13 Invesco
SteelPath MLP Select 40 Fund
|
|
Years
Ended November 30, | ||||
|
Class C |
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$5.67 |
$4.79 |
$3.80 |
$5.69 |
$6.92 |
|
Net
investment income (loss)(a) |
(0.05
) |
(0.04
) |
(0.04
) |
(0.05
) |
(0.08
) |
|
Return
of capital(a) |
0.28 |
0.27 |
0.25 |
0.32 |
0.40 |
|
Net
realized and unrealized gains (losses) |
0.83 |
1.11 |
1.24 |
(1.57
) |
(0.84
) |
|
Total
from investment operations |
1.06 |
1.34 |
1.45 |
(1.30
) |
(0.52
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.59
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.12
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.71
) |
|
Net
asset value, end of period |
$6.26 |
$5.67 |
$4.79 |
$3.80 |
$5.69 |
|
Total
return(b) |
19.85
% |
28.85
% |
38.77
% |
(22.13
)% |
(8.56
)% |
|
Net
assets, end of period (000’s omitted) |
$167,650 |
$190,471 |
$187,341 |
$186,444 |
$324,931 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before
taxes |
1.93
% |
1.95
% |
2.00
% |
2.01
% |
1.96
% |
|
Expense
(waivers) |
(0.04
)% |
(0.05
)% |
(0.07
)% |
(0.07
)% |
(0.06
)% |
|
With
fee waiver and/or expense reimbursement, before taxes(c) |
1.89
% |
1.90
% |
1.93
% |
1.94
% |
1.90
% |
|
Deferred
tax expense (benefit)(d) |
5.44
% |
1.96
% |
—
% |
—
% |
—
% |
|
With
fee waivers and/or expense reimbursements, after
taxes |
7.33
% |
3.86
% |
1.93
% |
1.94
% |
1.90
% |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
(1.00
)% |
(1.46
)% |
(0.96
)% |
(1.40
)% |
(1.21
)% |
|
Net
of expense (waivers) and before deferred tax benefit
(expense) |
(0.96
)% |
(1.41
)% |
(0.90
)% |
(1.33
)% |
(1.15
)% |
|
Deferred
tax benefit (expense)(e) |
0.13
% |
0.62
% |
—
% |
—
% |
—
% |
|
Ratio
of net investment income (loss), after taxes |
(0.83
)% |
(0.79
)% |
(0.90
)% |
(1.33
)% |
(1.15
)% |
(a)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(b)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(c)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 1.85%, 1.85%, 1.85%, 1.85% and 1.86%,
for the years ended November 30, 2023, 2022, 2021, 2020
and 2019,
respectively.
(d)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(e)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
14 Invesco
SteelPath MLP Select 40 Fund
|
|
Years
Ended November 30, |
Period
ended
November 30,
2019(a) | |||
|
Class R |
2023 |
2022 |
2021 |
2020 | |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$6.41 |
$5.34 |
$4.17 |
$6.13 |
$7.56 |
|
Net
investment income (loss)(b) |
(0.02
) |
(0.02
) |
(0.02
) |
(0.04
) |
(0.02
) |
|
Return
of capital(b) |
0.32 |
0.31 |
0.29 |
0.35 |
0.20 |
|
Net
realized and unrealized gains (losses) |
0.94 |
1.24 |
1.36 |
(1.68
) |
(1.20
) |
|
Total
from investment operations |
1.24 |
1.53 |
1.63 |
(1.37
) |
(1.02
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.34
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.07
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.41
) |
|
Net
asset value, end of period |
$7.18 |
$6.41 |
$5.34 |
$4.17 |
$6.13 |
|
Total
return(c) |
20.38
% |
29.47
% |
39.69
% |
(21.66
)% |
(13.94
)% |
|
Net
assets, end of period (000’s omitted) |
$19,776 |
$16,100 |
$1,681 |
$248 |
$419 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before
taxes |
1.43
% |
1.45
% |
1.50
% |
1.51
% |
1.46
%(d) |
|
Expense
(waivers) |
(0.04
)% |
(0.05
)% |
(0.07
)% |
(0.07
)% |
(0.06
)%(d) |
|
With
fee waiver and/or expense reimbursement, before taxes(e) |
1.39
% |
1.40
% |
1.43
% |
1.44
% |
1.40
%(d) |
|
Deferred
tax expense (benefit)(f) |
5.44
% |
1.96
% |
—
% |
—
% |
—
%(d) |
|
With
fee waivers and/or expense reimbursements, after
taxes |
6.83
% |
3.36
% |
1.43
% |
1.44
% |
1.40
%(d) |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
(0.50
)% |
(0.96
)% |
(0.46
)% |
(0.90
)% |
(0.71
)%(d) |
|
Net
of expense (waivers) and before deferred tax benefit
(expense) |
(0.46
)% |
(0.91
)% |
(0.40
)% |
(0.83
)% |
(0.65
)%(d) |
|
Deferred
tax benefit (expense)(g) |
0.13
% |
0.62
% |
—
% |
—
% |
—
%(d) |
|
Ratio
of net investment income (loss), after taxes |
(0.33
)% |
(0.29
)% |
(0.40
)% |
(0.83
)% |
(0.65
)%(d) |
(a)
Commencement
date after the close of business on May 24, 2019.
(b)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(c)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(d)
Annualized.
(e)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 1.35%, 1.35%, 1.35%,
1.35% and
1.36%, for the years ended November 30, 2023, 2022, 2021 and 2020, and the
period ended November 30, 2019, respectively.
(f)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(g)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
15 Invesco
SteelPath MLP Select 40 Fund
|
|
Years
Ended November 30,
| ||||
|
Class Y |
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$6.87 |
$5.68 |
$4.39 |
$6.38 |
$7.61 |
|
Net
investment income (loss)(a) |
0.01 |
0.01 |
0.01 |
(0.02
) |
(0.01
) |
|
Return
of capital(a) |
0.34 |
0.32 |
0.30 |
0.37 |
0.45 |
|
Net
realized and unrealized gains (losses) |
1.04 |
1.32 |
1.44 |
(1.75
) |
(0.96
) |
|
Total
from investment operations |
1.39 |
1.65 |
1.75 |
(1.40
) |
(0.52
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.59
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.12
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.71
) |
|
Net
asset value, end of period |
$7.79 |
$6.87 |
$5.68 |
$4.39 |
$6.38 |
|
Total
return(b) |
21.22
% |
29.83
% |
40.47
% |
(21.26
)% |
(7.76
)% |
|
Net
assets, end of period (000’s omitted) |
$850,542 |
$952,242 |
$923,220 |
$936,181 |
$1,540,550 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before
taxes |
0.93
% |
0.95
% |
1.00
% |
1.01
% |
0.95
% |
|
Expense
(waivers) |
(0.04
)% |
(0.05
)% |
(0.07
)% |
(0.07
)% |
(0.06
)% |
|
With
fee waiver and/or expense reimbursement, before taxes(c) |
0.89
% |
0.90
% |
0.93
% |
0.94
% |
0.89
% |
|
Deferred
tax expense (benefit)(d) |
5.44
% |
1.96
% |
—
% |
—
% |
—
% |
|
With
fee waivers and/or expense reimbursements, after
taxes |
6.33
% |
2.86
% |
0.93
% |
0.94
% |
0.89
% |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
0.00
% |
(0.46
)% |
0.04
% |
(0.40
)% |
(0.20
)% |
|
Net
of expense (waivers) and before deferred tax benefit
(expense) |
0.04
% |
(0.41
)% |
0.10
% |
(0.33
)% |
(0.14
)% |
|
Deferred
tax benefit (expense)(e) |
0.13
% |
0.62
% |
—
% |
—
% |
—
% |
|
Ratio
of net investment income (loss), after taxes |
0.17
% |
0.21
% |
0.10
% |
(0.33
)% |
(0.14
)% |
(a)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(b)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(c)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 0.85%, 0.85%, 0.85%, 0.85% and 0.85%,
for the years ended November 30, 2023, 2022, 2021, 2020
and 2019,
respectively.
(d)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(e)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
16 Invesco
SteelPath MLP Select 40 Fund
|
|
Years
Ended November 30, |
Period
ended
November 30,
2019(a) | |||
|
Class R5 |
2023 |
2022 |
2021 |
2020 | |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$6.56 |
$5.43 |
$4.21 |
$6.15 |
$7.56 |
|
Net
investment income (loss)(b) |
0.02 |
0.02 |
0.01 |
(0.01
) |
(0.00
)(c) |
|
Return
of capital(b) |
0.33 |
0.31 |
0.29 |
0.35 |
0.22 |
|
Net
realized and unrealized gains (losses) |
0.96 |
1.26 |
1.38 |
(1.69
) |
(1.22
) |
|
Total
from investment operations |
1.31 |
1.59 |
1.68 |
(1.35
) |
(1.00
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.34
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.07
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.41
) |
|
Net
asset value, end of period |
$7.40 |
$6.56 |
$5.43 |
$4.21 |
$6.15 |
|
Total
return(d) |
21.00
% |
30.11
% |
40.53
% |
(21.24
)% |
(13.67
)% |
|
Net
assets, end of period (000’s omitted) |
$10 |
$9 |
$7 |
$6 |
$8 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before taxes(e) |
0.84
% |
0.84
% |
0.86
% |
0.87
% |
0.84
%(f) |
|
Deferred
tax expense (benefit)(g) |
5.44
% |
1.96
% |
—
% |
—
% |
—
%(f) |
|
With
fee waivers and/or expense reimbursements, after
taxes |
6.28
% |
2.80
% |
0.86
% |
0.87
% |
0.84
%(f) |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
0.09
% |
(0.36
)% |
0.17
% |
(0.26
)% |
(0.09
)%(f) |
|
Deferred
tax benefit (expense)(h) |
0.13
% |
0.62
% |
—
% |
—
% |
—
%(f) |
|
Ratio
of net investment income (loss), after taxes |
0.22
% |
0.26
% |
0.17
% |
(0.26
)% |
(0.09
)%(f) |
(a)
Commencement
date after the close of business on May 24, 2019.
(b)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(c)
Rounds to less
than (0.005).
(d)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(e)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 0.80%, 0.79%, 0.78%, 0.78%, and 0.80%,
for the years ended, November 30, 2023, 2022, 2021 and 2020, and the period
ended November 30, 2019, respectively.
(f)
Annualized.
(g)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(h)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
17 Invesco
SteelPath MLP Select 40 Fund
|
|
Years
Ended November 30,
| ||||
|
Class R6 |
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
share operating data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$6.94 |
$5.73 |
$4.42 |
$6.42 |
$7.64 |
|
Net
investment income (loss)(a) |
0.02 |
0.02 |
0.01 |
(0.01
) |
(0.00
)(b) |
|
Return
of capital(a) |
0.35 |
0.33 |
0.29 |
0.37 |
0.42 |
|
Net
realized and unrealized gains (losses) |
1.04 |
1.32 |
1.47 |
(1.77
) |
(0.93
) |
|
Total
from investment operations |
1.41 |
1.67 |
1.77 |
(1.41
) |
(0.51
) |
|
Less: |
|
|
|
|
|
|
Return
of capital |
— |
(0.28
) |
(0.46
) |
(0.59
) |
(0.59
) |
|
Dividends
from net investment income |
(0.47
) |
(0.18
) |
— |
— |
(0.12
) |
|
Total
distributions |
(0.47
) |
(0.46
) |
(0.46
) |
(0.59
) |
(0.71
) |
|
Net
asset value, end of period |
$7.88 |
$6.94 |
$5.73 |
$4.42 |
$6.42 |
|
Total
return(c) |
21.30
% |
29.92
% |
40.65
% |
(21.29
)% |
(7.59
)% |
|
Net
assets, end of period (000’s omitted) |
$280,937 |
$250,311 |
$238,973 |
$424,900 |
$810,225 |
|
Portfolio
turnover rate |
13
% |
11
% |
18
% |
30
% |
23
% |
|
Ratios/supplemental
data based on average net assets: |
|
|
|
|
|
|
Ratio
of expenses: |
|
|
|
|
|
|
Without
fee waivers and/or expense reimbursements, before
taxes |
0.84
% |
0.84
% |
0.86
% |
0.88
% |
0.81
% |
|
Expense
(waivers) |
(0.01
)% |
—
% |
—
% |
—
% |
—
% |
|
With
fee waiver and/or expense reimbursement, before taxes(d)
|
0.83
% |
0.84
% |
0.86
% |
0.88
% |
0.81
% |
|
Deferred
tax expense (benefit)(e) |
5.44
% |
1.96
% |
—
% |
—
% |
—
% |
|
With
fee waivers and/or expense reimbursements, after
taxes |
6.27
% |
2.80
% |
0.86
% |
0.88
% |
0.81
% |
|
Ratio
of investment income (loss): |
|
|
|
|
|
|
Ratio
of net investment income (loss) before taxes |
0.09
% |
(0.36
)% |
0.17
% |
(0.27
)% |
(0.06
)% |
|
Expense
(waivers) |
(0.01
)% |
—
% |
—
% |
—
% |
—
% |
|
Net
of expense (waivers) and before deferred tax
benefit/(expense) |
0.10
% |
(0.36
)% |
0.17
% |
(0.27
)% |
(0.06
)% |
|
Deferred
tax benefit (expense)(f) |
0.13
% |
0.62
% |
—
% |
—
% |
—
% |
|
Ratio
of net investment income (loss), after taxes |
0.23
% |
0.26
% |
0.17
% |
(0.27
)% |
(0.06
)% |
(a)
Per share net
investment income (loss) is calculated based on average shares outstanding
during the period net of deferred tax expense (benefit). Per share return of
capital is calculated based on average shares during the period net of deferred
tax expense (benefit) estimated at the combined Federal and State statutory
income tax rate.
(b)
Rounds to less
than (0.005).
(c)
Includes
adjustments in accordance with accounting principles generally accepted in the
United States of America and as such, the net asset value for financial
reporting purposes and returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Does not include
sales charges and is not annualized for periods less than one year, if
applicable.
(d)
Includes
borrowing and franchise tax expense. Without borrowing and franchise tax
expense, the net expense ratio would be 0.79%, 0.79%, 0.78%, 0.79%
and
0.77%,
for the years
ended November 30, 2023, 2022, 2021, 2020
and 2019,
respectively.
(e)
Deferred tax
expense (benefit) estimate for the ratio calculation is derived from the net
investment income (loss), and realized and unrealized gains
(losses).
(f)
Deferred tax
benefit (expense) for the ratio calculation, when applicable, is derived from
net investment income (loss) only.
18 Invesco
SteelPath MLP Select 40 Fund