Prospectus
Class: A
(ABRZX ),
C (ABRCX ), R (ABRRX ), Y
(ABRYX ),
R5 (ABRIX ), R6 (ALLFX )
Invesco
Balanced-Risk Allocation Fund
As with all other
mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and
the Commodity Futures Trading Commission (CFTC) have 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
Balanced-Risk Allocation Fund
The Fund's
investment objective is to provide total return with a low to moderate
correlation to traditional financial market
indices.
This table
describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. Fees and expenses of Invesco Cayman Commodity Fund I Ltd., a
wholly-owned subsidiary of the Fund (Subsidiary), are included in the
table.
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).
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Class: |
A |
C |
R |
Y |
R5 |
R6 |
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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 |
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating Expenses |
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Fee
Waiver and/or Expense Reimbursement2 |
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Total
Annual Fund Operating Expenses After Fee
Waiver
and/or Expense Reimbursement |
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1
2
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:
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1
Year |
3
Years |
5
Years |
10
Years |
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Class
A |
$ |
$ |
$ |
$ |
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Class
C |
$ |
$ |
$ |
$ |
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Class
R |
$ |
$ |
$ |
$ |
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Class
Y |
$ |
$ |
$ |
$ |
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Class
R5 |
$ |
$ |
$ |
$ |
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Class
R6 |
$ |
$ |
$ |
$ |
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1
Year |
3
Years |
5
Years |
10
Years |
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Class
A |
$ |
$ |
$ |
$ |
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Class
C |
$ |
$ |
$ |
$ |
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Class
R |
$ |
$ |
$ |
$ |
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Class
Y |
$ |
$ |
$ |
$ |
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Class
R5 |
$ |
$ |
$ |
$ |
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Class
R6 |
$ |
$ |
$ |
$ |
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The Fund’s
investment strategy is designed to provide capital loss protection during down
markets by investing across multiple macro factors. Under normal market
conditions, the Fund’s portfolio management team allocates across three macro
factors: growth, defensive and real return, such that no one macro factor drives
the Fund’s performance. The Fund’s exposure to these three macro factors will be
achieved primarily through investments in derivative instruments (generally
having aggregate notional exposure exceeding 65% of the Fund’s net assets),
including but not limited to futures, options, currency forward contracts and
swap agreements. The portfolio managers manage the Fund’s portfolio using two
different processes. One is strategic asset allocation, which the portfolio
managers use to express their long-term views of the market. The portfolio
managers apply their strategic process to, on average, approximately 80% of the
Fund’s portfolio risk, as determined by the portfolio managers’ proprietary risk
analysis. The other process is tactical asset allocation, which is used by the
portfolio managers to reflect their shorter-term views of the market. The
strategic and tactical processes are intended to adjust the Fund’s portfolio
risk in a variety of market conditions.
The
portfolio managers implement their investment decisions primarily through the use of
derivatives and other investments that create leverage. The Fund uses
derivatives and other leveraged instruments to create and adjust exposures to
the three macro factors. The portfolio managers make these adjustments to
balance risk exposure when they believe it will benefit the Fund. Using
derivatives often allows the portfolio managers to implement their views more
efficiently and to gain more exposure to the macro factors than investing in
more traditional assets such as stocks and bonds would allow. The Fund may hold
long and short positions in derivatives and in investments in each of the three
macro factors; however, the Fund will typically maintain net long exposure to
each macro factor, such that the Fund is expected to benefit from general price
appreciation of
1 Invesco
Balanced-Risk Allocation Fund
investments in that
macro factor. The Fund’s use of derivatives and the leveraged investment
exposure created by its use of derivatives are expected to be significant and
greater than most mutual funds. The Fund may use quantitative models as part of
the investment selection process.
The
Fund’s net asset value over a short to intermediate term is expected to be
volatile because of the significant use of derivatives and other instruments
that provide leverage, including futures contracts, options, swaps and
commodity-linked notes. Volatility measures the range of returns of a security,
fund, index or other investment, as indicated by the annualized standard
deviation of its returns. Higher volatility generally indicates higher risk and
is often reflected by frequent and sometimes significant movements up and down
in value. The Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund did not use derivatives or other
instruments that have a leveraging effect. Leveraging tends to magnify,
sometimes significantly depending on the amount of leverage used, the effect of
any increase or decrease in the Fund’s exposure to a macro factor and may cause
the Fund’s net asset value to be more volatile than a fund that does not use
leverage. For example, if the Fund gains exposure to a specific macro factor
through an instrument that provides leveraged exposure to the class, and that
leveraged instrument increases in value, the gain to the Fund will be magnified;
however, if the leveraged instrument decreases in value, the loss to the Fund
will be magnified.
The
Adviser’s investment process has three steps. The first step involves investment
selection within the three macro factors. The portfolio managers select
investments to represent each of the three macro factors
from a
universe of over fifty investments. The selection process (1) evaluates a
particular investment’s theoretical case for long-term excess returns relative
to cash; (2) screens the identified investments against minimum liquidity
criteria; and (3) reviews the expected correlation among the investments,
meaning the likelihood that the value of the investments will move in the same
direction at the same time, and the expected risk of each investment to
determine whether the selected investments are likely to improve the expected
risk adjusted return of the Fund.
The
second step in the investment process involves portfolio construction. The
portfolio managers use their own estimates for risk and correlation to weight
each macro factor and the investments within each macro factor selected in the
first step to construct a portfolio that they believe is risk-balanced across
the three macro factors. Periodically, the management team re-estimates the risk
contributed by each macro factor
and
investment and rebalances the portfolio; the portfolio also may be rebalanced
when the Fund makes new investments. Taken together, the first two steps in the
process result in the strategic allocation.
In
the third step of the investment process, using a systematic approach
based
on fundamental principles, the portfolio management team analyzes the macro
factors and investments, considering the following factors: valuation, economic
environment and historic price movements. Regarding valuation, the portfolio
managers evaluate whether a macro factor and investments in that macro factor
are attractively priced relative to fundamentals. Next, the portfolio managers
assess the economic environment and consider the effect that monetary policy and
other determinants of economic growth, inflation and market volatility will have
on a macro factor and related investments. Lastly, the portfolio managers assess
the impact of historic price movements for each macro factor and related
investments on likely future returns.
Utilizing
the results from the analysis described above, the portfolio managers determine
tactical short-term over-weight positions (incurring additional exposure
relative to the strategic allocation) and under-weight positions (incurring less
exposure relative to the strategic allocation) for the macro factors and
investments. The management team actively adjusts portfolio positions to reflect
the near-term market environment, while remaining consistent with the
balanced-risk long-term portfolio structure described in step two
above.
The
Fund’s growth exposure
will be achieved primarily through investments in derivatives that track equity
indices comprised of shares of companies in developed and/or emerging market
countries, including equity indices that emphasize exposure to companies
associated with certain characteristics, known as style factors, including high
dividend, quality, value, growth, low volatility, size (large-, mid- or
small-cap) and momentum. In addition, the Fund may invest directly in shares of
such companies and in exchange-traded funds (ETFs) that provide equity exposure,
including ETFs that track factor-based indices that emphasize the style factors
noted above. The Fund may also buy and write (sell) put and call options on
equities, equity indices and ETFs, including in combination, to adjust the
Fund’s equity exposure or to generate income. Additionally, the Fund can use
currency forward contracts to hedge against the risk that the value of the
foreign currencies in which its equity investments are denominated will
depreciate against the U.S. dollar.
The
Fund’s defensive exposure
will be achieved primarily through derivatives that offer exposure to the debt
or credit of issuers in developed and/or emerging markets that are rated
investment grade or are unrated but deemed to be investment grade quality by the
Adviser, including U.S. and foreign government debt securities having
intermediate (5 – 10 years) and long (10 plus years) term maturity.
The
Fund’s real return
exposure will be achieved primarily through investments in commodity futures and
swaps, commodity related ETFs and exchange-traded notes (ETNs) and
commodity-linked notes, some or all of which will be owned through Invesco
Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the Fund organized
under the laws of the Cayman Islands (Subsidiary). The commodity investments
will be focused in four sectors of the commodities market: energy, precious
metals, industrial metals and agriculture/livestock.
The
Fund will invest in the Subsidiary to gain exposure to commodities markets. The
Subsidiary, in turn, will invest in commodity futures and swaps, commodity
related ETFs and ETNs and commodity-linked notes. The Subsidiary is advised by
the Adviser, has the same investment objective as the Fund and generally employs
the same investment strategy. Unlike the Fund, however, the Subsidiary may
invest without limitation in commodity-linked derivatives and other investments
that may provide leveraged and non-leveraged exposure to commodities. The
Subsidiary holds cash and can invest in cash equivalent instruments, including
affiliated money market funds, some or all of which may serve as margin or
collateral for the Subsidiary’s derivative positions. Because the Subsidiary is
wholly-owned by the Fund, the Fund will be subject to the risks associated with
any investment by the Subsidiary.
The
Fund generally will maintain a substantial portion of its net
assets (including assets held by the Subsidiary) in cash and cash equivalent
instruments, including affiliated money market funds, as margin or collateral
for the Fund’s obligations under derivative transactions, or for cash management
purposes. The larger the value of the Fund’s derivative positions, as opposed to
positions held in non-derivative instruments, the more the Fund will be required
to maintain cash and cash equivalents as margin or collateral for such
derivatives.
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
2 Invesco
Balanced-Risk Allocation Fund
real or perceived
adverse economic conditions, changes in the general outlook for revenues or
corporate earnings, changes in interest or currency rates, regional or global
instability, natural or environmental disasters, widespread disease or other
public health issues, war, military conflict, acts of terrorism,
economic crisis or
adverse investor sentiment generally. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by the Fund will rise
in value.
Correlation
Risk. Because the Fund’s
investment strategy seeks to balance risk across three asset classes and, within
each asset class, across different countries and investments, to the extent
either the asset classes or the selected countries and investments become
correlated in a way not anticipated by the Adviser, the Fund’s risk allocation
process may result in magnified risks and loss instead of balancing (reducing)
the risk of loss.
Derivatives
Risk. The value of a
derivative instrument depends largely on (and is derived from) the value of an
underlying security, currency, commodity, interest rate, index or other asset
(each referred to as an underlying asset). In addition to risks relating to the
underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk
is the risk that the counterparty to the derivative contract will default on its
obligation to pay the Fund the amount owed or otherwise perform under the
derivative contract. Derivatives create leverage risk because they do not
require payment up front equal to the economic exposure created by holding a
position in the derivative. As a result, an adverse change in the value of the
underlying asset could result in the Fund sustaining a loss that is
substantially greater than the amount invested in the derivative or the
anticipated value of the underlying asset, which may make the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be
less liquid than more traditional investments and the Fund may be unable to sell
or close out its derivative positions at a desirable time or price. This risk
may be more acute under adverse market conditions, during which the Fund may be
most in need of liquidating its derivative positions. Derivatives may also be
harder to value, less tax efficient and subject to changing government
regulation that could impact the Fund’s ability to use certain derivatives or
their cost. Derivatives strategies may not always be successful. For example,
derivatives used for hedging or to gain or limit exposure to a particular market
segment may not provide the expected benefits, particularly during adverse
market conditions. These risks are greater for the Fund than most other mutual
funds because the Fund will implement its investment strategy primarily through
derivative instruments rather than direct investments in
stocks/bonds.
Investing
in Stocks Risk. The value of the
Fund’s portfolio may be affected by changes in the stock markets. 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.
Debt
Securities Risk. The prices of debt
securities held by the Fund will be affected by changes in interest rates, the
creditworthiness of the
issuer and other
factors. An increase in prevailing interest rates typically causes the value of
existing debt securities to fall and often has a greater impact on
longer-duration debt securities and higher quality debt securities. Falling
interest rates will cause the Fund to reinvest the proceeds of debt securities
that have been repaid by the issuer at lower interest rates. Falling interest
rates may also reduce the Fund’s distributable income because interest payments
on floating rate debt instruments held by the Fund will decline. The Fund could
lose money on investments in debt securities if the issuer or borrower fails to
meet its obligations to make interest payments and/or to repay principal in a
timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the
security may affect the value of debt securities. The Adviser’s credit analysis
may fail to anticipate such changes, which could result in buying a debt
security at an inopportune time or failing to sell a debt security in advance of
a price decline or other credit event.
Commodity
Risk. The Fund may have
investment exposure to the commodities markets and/or a particular sector of the
commodities markets, which may subject the Fund to greater volatility than
investments in traditional securities, such as stocks and bonds. Volatility in
the commodities markets may be caused by changes in overall market movements,
domestic and foreign political and economic events and policies, war, acts of
terrorism, changes in domestic or foreign interest rates and/or investor
expectations concerning interest rates, domestic and foreign inflation rates,
investment and trading activities of mutual funds, hedge funds and commodities
funds, and factors such as drought, floods, weather, livestock disease,
embargoes, tariffs and other regulatory developments or supply and demand
disruptions. Because the Fund’s performance may be linked to the performance of
volatile commodities, investors should be willing to assume the risks of
potentially significant fluctuations in the value of the Fund’s
shares.
Commodities
Tax Risk. The tax treatment
of commodity-linked derivative instruments may be adversely affected by changes
in legislation, regulations or other legally binding authority. If, as a result
of any such adverse action, the income of the Fund from certain commodity-linked
derivatives was treated as non-qualifying income, the Fund might fail to qualify
as a regulated investment company and be subject to federal income tax at the
Fund level. As a result of an announcement by the Internal Revenue Service
(IRS), the Fund intends to invest in commodity-linked notes: (a) directly,
relying on an opinion of counsel confirming that income from such investments
should be qualifying income because such commodity-linked notes constitute
securities under section 2(a)(36) of the 1940 Act or (b) indirectly through the
Subsidiary. Should the IRS issue further guidance, or Congress enact
legislation, that adversely affects the tax treatment of the Fund’s use of
commodity-linked notes or the Subsidiary (which guidance might be applied to the
Fund retroactively), it could, among other consequences, limit the Fund’s
ability to pursue its investment strategy.
Changing
Fixed Income Market Conditions Risk.
Increases in the
federal funds and equivalent foreign rates or other changes to monetary policy
or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those
with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer
market-making capacity may also potentially lead to heightened volatility and
reduced liquidity in the fixed income markets. As a result, the value of the
Fund’s investments and share price may decline. Changes in central bank policies
could also result in higher than normal redemptions by shareholders, which could
potentially increase the Fund’s portfolio turnover rate and transaction
costs.
Foreign
Securities Risk. The Fund's foreign
investments may be adversely affected by political and social instability,
changes in economic or taxation policies, difficulty in enforcing obligations,
decreased liquidity or increased volatility. Foreign investments also involve
the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in
3 Invesco
Balanced-Risk Allocation Fund
which the Fund
could lose its entire investments in a certain market) and the possible adoption
of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and
accounting controls, and may therefore be more susceptible to fraud or
corruption. There may be less public information available about foreign
companies than U.S. companies, making it difficult to evaluate those foreign
companies. Unless the Fund has hedged its foreign currency exposure, foreign
securities risk also involves the risk of negative foreign currency rate
fluctuations, which may cause the value of securities denominated in such
foreign currency (or other instruments through which the Fund has exposure to
foreign currencies) to decline in value. Currency exchange rates may fluctuate
significantly over short periods of time. Currency hedging strategies, if used,
are not always successful.
Emerging
Market Securities Risk. Emerging markets
(also referred to as developing markets) are generally subject to greater market
volatility, political, social and economic instability, uncertain trading
markets and more governmental limitations on foreign investment than more
developed markets. In addition, companies operating in emerging markets may be
subject to lower trading volume and greater price fluctuations than companies in
more developed markets. Such countries’ economies may be more dependent on
relatively few industries or investors that may be highly vulnerable to local
and global changes. Companies in emerging market countries generally may be
subject to less stringent regulatory, disclosure, financial reporting,
accounting, auditing and recordkeeping standards than companies in more
developed countries. As a result, information, including financial information,
about such companies may be less available and reliable, which can impede the
Fund’s ability to evaluate such companies. Securities law and the enforcement of
systems of taxation in many emerging market countries may change quickly and
unpredictably, and the ability to bring and enforce actions (including
bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s
assets, restrictions on foreign ownership of local companies, restrictions on
withdrawing assets from the country, protectionist measures and practices such
as share blocking), or to obtain information needed to pursue or enforce such
actions, may be limited. In addition, the ability of foreign entities to
participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities
may be subject to additional transaction costs, delays in settlement procedures,
unexpected market closures, and lack of timely information.
Foreign
Government Debt Risk.
Investments in
foreign government debt securities (sometimes referred to as sovereign debt
securities) involve certain risks in addition to those relating to foreign
securities or debt securities generally. The issuer of the debt or the
governmental authorities that control the repayment of the debt may be unable or
unwilling to repay principal or interest when due in accordance with the terms
of such debt, and the Fund may have limited recourse in the event of a default
against the defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or restructure
their debt payments or declare moratoria on
payments.
LIBOR
Transition Risk. The Fund may have
investments in financial instruments that utilize the London Interbank Offered
Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate
calculations. LIBOR is intended to measure the rate generally at which banks can
lend and borrow from one another in the relevant currency on an unsecured basis.
Regulators and financial industry working groups in several jurisdictions have
worked over the past several years to identify alternative reference rates
(“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. For
example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and
foreign regulators have proposed other interbank offered rates, such as the
Sterling Overnight Index Average
(“SONIA”)
and
other
replacement
rates,
which
could also be adopted. Consequently, the publication of most LIBOR rates ceased
at the end of 2021, but a selection of widely used USD LIBOR rates continues to
be published until June 2023 to allow for an orderly transition away from these
rates. Additionally, key regulators have instructed banking institutions to
cease entering into new contracts that reference these USD LIBOR settings after
December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition and its
effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics of any ARRs or
financial instruments in which the Fund invests that utilize ARRs will be
similar to or produce the same value or economic equivalence as LIBOR or that
these instruments will have the same volume or liquidity. Additionally, although
regulators have generally prohibited banking institutions from entering into new
contracts that reference those USD LIBOR settings that continue to exist, there
remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by
which a replacement interest rate will be identified and implemented into these
instruments when USD LIBOR is ultimately discontinued. The effects of such
uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could
result in losses to the Fund.
Commodity-Linked
Notes Risk. In addition to
risks associated with the underlying commodities, investments in
commodity-linked notes may be subject to additional risks, such as non-payment
of interest and loss of principal, counterparty risk, lack of a secondary market
and risk of greater volatility than traditional equity and debt securities. The
value of the commodity-linked notes the Fund buys may fluctuate significantly
because the values of the underlying investments to which they are linked are
themselves volatile. Additionally, certain commodity-linked notes employ
“economic” leverage by requiring payment by the issuer of an amount that is a
multiple of the price increase or decrease of the underlying commodity,
commodity index, or other economic variable. Such economic leverage will
increase the volatility of the value of these commodity-linked notes and the
Fund to the extent it invests in such notes.
Short
Position Risk. Because the Fund’s
potential loss on a short position arises from increases in the value of the
asset sold short, the Fund will incur a loss on a short position, which is
theoretically unlimited, if the price of the asset sold short increases from the
short sale price. The counterparty to a short position or other market factors
may prevent the Fund from closing out a short position at a desirable time or
price and may reduce or eliminate any gain or result in a loss. In a rising
market, the Fund’s short positions will cause the Fund to underperform the
overall market and its peers that do not engage in shorting. If the Fund holds
both long and short positions, and both positions decline simultaneously, the
short positions will not provide any buffer (hedge) from declines in value of
the Fund’s long positions. Certain types of short positions involve leverage,
which may exaggerate any losses, potentially more than the actual cost of the
investment, and will increase the volatility of the Fund’s returns.
Exchange-Traded
Funds Risk. In addition to the
risks associated with the underlying assets held by the exchange-traded fund,
investments in exchange-traded funds are subject to the following additional
risks: (1) an exchange-traded fund’s shares may trade above or below its net
asset value; (2) an active trading market for the exchange-traded fund’s shares
may not develop or be maintained; (3) trading an exchange-traded fund’s shares
may be halted by the listing exchange; (4) a passively managed exchange-traded
fund may not track the performance of the reference asset; and (5) a passively
managed exchange-traded fund may hold troubled securities. Investment in
exchange-traded funds may involve duplication of management fees and certain
other expenses, as the Fund indirectly bears its proportionate share of any
expenses paid by the exchange-traded funds in which it invests. Further, certain
exchange-traded funds in which the Fund may invest are leveraged, which may
result in economic leverage, permitting the Fund to gain exposure that is
greater
4 Invesco
Balanced-Risk Allocation Fund
than would be the
case in an unlevered instrument and potentially resulting in greater
volatility.
Exchange-Traded
Notes Risk. Exchange-traded
notes are subject to credit risk, counterparty risk, and the risk that the value
of the exchange-traded note may drop due to a downgrade in the issuer's credit
rating. The value of an exchange-traded note may also be influenced by time to
maturity, level of supply and demand for the exchange-traded note, volatility
and lack of liquidity in the underlying market, changes in the applicable
interest rates, and economic, legal, political, or geographic events that affect
the referenced underlying market or assets. The Fund will bear its proportionate
share of any fees and expenses borne by an exchange-traded note in which it
invests. For certain exchange-traded notes, there may be restrictions on the
Fund’s right to redeem its investment, which is meant to be held until
maturity.
Factor-Based
Strategy Risk. Although the Fund
may have investments that track equity indices that emphasize exposure to
companies associated with certain characteristics, known as style factors, there
is no guarantee that this strategy will be
successful.
Quantitative
Models Risk. Quantitative
models are based upon many factors that measure individual securities relative
to each other. Quantitative models may be highly reliant on the gathering,
cleaning, culling and analysis of large amounts of data from third parties and
other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use
of the quantitative models. The factors used in models may not identify
securities that perform well in the future, and the securities selected may
perform differently from the market as a whole or from their expected
performance.
Volatility
Risk. Certain of the
Fund's investments may appreciate or decrease significantly in value over short
periods of time. This may cause the Fund’s net asset value per share to
experience significant increases or declines in value over short periods of
time.
Subsidiary
Risk. By investing in
the Subsidiary, the Fund is indirectly exposed to risks associated with the
Subsidiary’s investments. The Subsidiary is not registered under the Investment
Company Act of 1940, as amended (1940 Act), and, except as otherwise noted in
this prospectus, is not subject to the investor protections of the 1940 Act.
Changes in the laws of the United States and/or the Cayman Islands, under which
the Fund and the Subsidiary, respectively, are organized, could result in the
inability of the Fund and/or the Subsidiary to operate as described in this
prospectus and the SAI, and could negatively affect the Fund and its
shareholders.
Money
Market Fund Risk. Although money
market funds generally seek to preserve the value of an investment at $1.00 per
share, the Fund may lose money by investing in money market funds. A money
market fund's sponsor has no legal obligation to provide financial support to
the money market fund. The credit quality of a money market fund's holdings can
change rapidly in certain markets, and the default of a single holding could
have an adverse impact on the money market fund's share price. A money market
fund's share price can also be negatively affected during periods of high
redemption pressures, illiquid markets and/or significant market
volatility.
U.S.
Government Obligations Risk.
Obligations of U.S.
Government agencies and authorities receive varying levels of support and may
not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be
given that the U.S. Government will provide financial support to its agencies
and authorities if it is not obligated by law to do so.
Financial
Markets Regulatory Risk. Policy changes by
the U.S. government or its regulatory agencies and political events within the
U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a
significant degree, which may adversely impact the Fund’s operations, universe
of potential investment options, and return
potential.
Management
Risk. 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. Because the
Fund’s investment process relies heavily on its asset allocation process, market
movements that are counter to the portfolio managers’ expectations may have a
significant adverse effect on the Fund’s net asset
value. Additionally, legislative, regulatory, or tax developments may
adversely affect management of the Fund and, therefore, the ability of the Fund
to achieve its investment objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense
reimbursements.
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 |
|
|
|
|
|
|
|
- |
5 Invesco
Balanced-Risk Allocation Fund
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
|
Class
A |
||||
|
Return
Before Taxes |
|
- |
|
|
|
Return
After Taxes on Distributions |
- |
- |
- | |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
|
- |
- |
|
|
| ||||
|
Class
C |
|
- |
|
|
|
| ||||
|
Class
R |
|
- |
|
|
|
| ||||
|
Class
Y |
|
- |
|
|
|
| ||||
|
Class
R5 |
|
- |
|
|
|
| ||||
|
Class
R6 |
|
- |
|
|
|
| ||||
|
Custom
Invesco Balanced-Risk Allocation Style
Index
is composed of 60% MSCI World Index (Net) (reflects
reinvested dividends net of withholding
taxes,
but reflects no deduction for fees, expenses Aggregate
Bond Index (reflects no deduction for
fees,
expenses or taxes) |
|
- |
|
|
|
| ||||
|
Lipper
Alternative Global Macro Funds Index |
|
- |
|
|
|
| ||||
|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
- |
|
|
|
| ||||
Management
of the Fund
Investment Adviser:
Invesco Advisers, Inc.
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
Mark
Ahnrud, CFA |
Portfolio
Manager |
2009 |
|
| ||
John
Burrello, CFA |
Portfolio
Manager |
2022 |
|
| ||
Chris
Devine, CFA |
Portfolio
Manager |
2009 |
|
| ||
Scott
Hixon, CFA |
Portfolio
Manager |
2009 |
|
| ||
Christian
Ulrich, CFA |
Portfolio
Manager |
2009 |
|
| ||
Scott
Wolle, CFA |
Portfolio
Manager |
2009 |
|
| ||
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’s
distributions generally are taxable to you as ordinary income, capital gains, or
some combination of both, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan, 529 college savings plan or individual
retirement account. Any distributions from a 401(k) plan or individual
retirement account may be taxed as ordinary income when withdrawn from such plan
or 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.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The Fund’s
investment objective is to provide total return with a low to moderate
correlation to traditional financial market indices. The Fund’s investment
objective may be changed by the Board of Trustees (the Board) without
shareholder approval.
The
Fund’s
investment strategy is designed to provide capital loss protection during down
markets by investing across multiple macro factors. Under normal market
conditions, the Fund’s portfolio management team allocates across three macro
factors: growth, defensive and real return, such that no one macro factor drives
the Fund’s performance. The Fund’s exposure to these three macro factors will be
achieved primarily through investments in derivative instruments (generally
having aggregate notional exposure exceeding 65% of the Fund’s net assets),
including but not limited to futures, options, currency forward contracts and
swap agreements. The portfolio managers manage the Fund’s portfolio using two
different processes. One is strategic asset allocation, which the portfolio
managers use to express their long-term views of the market. The portfolio
managers apply their strategic process to, on average, approximately 80% of the
Fund’s portfolio risk, as determined by the portfolio managers’ proprietary risk
analysis. The other process is tactical asset allocation, which is used by the
portfolio managers to reflect their shorter-term views of the market. The
strategic and tactical processes are intended to adjust the Fund’s portfolio
risk in a variety of market conditions.
The
portfolio managers implement their investment decisions primarily through the use of
derivatives and other investments that create leverage.
6 Invesco
Balanced-Risk Allocation Fund
The Fund uses
derivatives and other leveraged instruments to create and adjust exposures to
the three macro factors. The portfolio managers make these adjustments to
balance risk exposure when they believe it will benefit the Fund. Using
derivatives often allows the portfolio managers to implement their views more
efficiently and to gain more exposure to the macro factors than investing in
more traditional assets such as stocks and bonds would allow. The Fund may hold
long and short positions in derivatives and in investments in each of the three
macro factors; however, the Fund will typically maintain net long exposure to
each macro factor, such that the Fund is expected to benefit from general price
appreciation of investments in that macro factor. The Fund’s use of derivatives
and the leveraged investment exposure created by its use of derivatives are
expected to be significant and greater than most mutual funds. The Fund may use
quantitative models as part of the investment selection process.
The
Fund’s net asset value over a short to intermediate term is expected to be
volatile because of the significant use of derivatives and other instruments
that provide leverage, including futures contracts, options, swaps and
commodity-linked notes. Volatility measures the range of returns of a security,
fund, index or other investment, as indicated by the annualized standard
deviation of its returns. Higher volatility generally indicates higher risk and
is often reflected by frequent and sometimes significant movements up and down
in value. The Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund did not use derivatives or other
instruments that have a leveraging effect. Leveraging tends to magnify,
sometimes significantly depending on the amount of leverage used, the effect of
any increase or decrease in the Fund’s exposure to a macro factor and may cause
the Fund’s net asset value to be more volatile than a fund that does not use
leverage. For example, if the Fund gains exposure to a specific macro factor
through an instrument that provides leveraged exposure to the class, and that
leveraged instrument increases in value, the gain to the Fund will be magnified;
however, if the leveraged instrument decreases in value, the loss to the Fund
will be magnified.
The
Adviser’s investment process has three steps. The first step involves investment
selection within the three macro factors. The portfolio managers select
investments to represent each of the three macro factors
from a
universe of over fifty investments. The selection process (1) evaluates a
particular investment’s theoretical case for long-term excess returns relative
to cash; (2) screens the identified investments against minimum liquidity
criteria; and (3) reviews the expected correlation among the investments,
meaning the likelihood that the value of the investments will move in the same
direction at the same time, and the expected risk of each investment to
determine whether the selected investments are likely to improve the expected
risk adjusted return of the Fund.
The
second step in the investment process involves portfolio construction. The
portfolio managers use their own estimates for risk and correlation to weight
each macro factor and the investments within each macro factor selected in the
first step to construct a portfolio that they believe is risk-balanced across
the three macro factors. Periodically, the management team re-estimates the risk
contributed by each macro factor
and
investment and rebalances the portfolio; the portfolio also may be rebalanced
when the Fund makes new investments. Taken together, the first two steps in the
process result in the strategic allocation.
In
the third step of the investment process, using a systematic approach
based
on fundamental principles, the portfolio management team analyzes the macro
factors and investments, considering the following factors: valuation, economic
environment and historic price movements. Regarding valuation, the portfolio
managers evaluate whether a macro factor and investments in that macro factor
are attractively priced relative to fundamentals. Next, the portfolio managers
assess the economic environment and consider the effect that monetary policy and
other determinants of economic growth, inflation and market volatility will have
on a macro factor and related investments. Lastly, the portfolio managers
assess the impact
of historic price movements for each macro factor and related investments on
likely future returns.
Utilizing
the results from the analysis described above, the portfolio managers determine
tactical short-term over-weight positions (incurring additional exposure
relative to the strategic allocation) and under-weight positions (incurring less
exposure relative to the strategic allocation) for the macro factors and
investments. The management team actively adjusts portfolio positions to reflect
the near-term market environment, while remaining consistent with the
balanced-risk long-term portfolio structure described in step two
above.
The
Fund’s growth exposure
will be achieved primarily through investments in derivatives that track equity
indices comprised of shares of companies in developed and/or emerging market
countries, including equity indices that emphasize exposure to companies
associated with certain characteristics, known as style factors, including high
dividend, quality, value, growth, low volatility, size (large-, mid- or
small-cap) and momentum. In addition, the Fund may invest directly in shares of
such companies and in exchange-traded funds (ETFs) that provide equity exposure,
including ETFs that track factor-based indices that emphasize the style factors
noted above. The Fund may also buy and write (sell) put and call options on
equities, equity indices and ETFs, including in combination, to adjust the
Fund’s equity exposure or to generate income. Additionally, the Fund can use
currency forward contracts to hedge against the risk that the value of the
foreign currencies in which its equity investments are denominated will
depreciate against the U.S. dollar.
The
Fund’s defensive exposure
will be achieved primarily through derivatives that offer exposure to the debt
or credit of issuers in developed and/or emerging markets that are rated
investment grade or are unrated but deemed to be investment grade quality by the
Adviser, including U.S. and foreign government debt securities having
intermediate (5 – 10 years) and long (10 plus years) term maturity.
The
Fund’s real return
exposure will be achieved primarily through investments in commodity futures and
swaps, commodity related ETFs and exchange-traded notes (ETNs) and
commodity-linked notes, some or all of which will be owned through Invesco
Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the Fund organized
under the laws of the Cayman Islands
(Subsidiary). The
commodity investments will be focused in four sectors of the commodities market:
energy, precious metals, industrial metals and
agriculture/livestock.
The
Fund will invest in the Subsidiary to gain exposure to commodities markets. The
Subsidiary, in turn, will invest in commodity futures and swaps, commodity
related ETFs and ETNs and commodity-linked notes. The Subsidiary is advised by
the Adviser, has the same investment objective as the Fund and generally employs
the same investment strategy. Unlike the Fund, however, the Subsidiary may
invest without limitation in commodity-linked derivatives and other investments
that may provide leveraged and non-leveraged exposure to commodities. The
Subsidiary holds cash and can invest in cash equivalent instruments, including
affiliated money market funds, some or all of which may serve as margin or
collateral for the Subsidiary’s derivative positions. Because the Subsidiary is
wholly-owned by the Fund, the Fund will be subject to the risks associated with
any investment by the Subsidiary.
The
Fund generally will maintain a substantial portion of its net
assets (including assets held by the Subsidiary) in cash and cash equivalent
instruments, including affiliated money market funds, as margin or collateral
for the Fund’s obligations under derivative transactions, or for cash management
purposes. The larger the value of the Fund’s derivative positions, as opposed to
positions held in non-derivative instruments, the more the Fund will be required
to maintain cash and cash equivalents as margin or collateral for such
derivatives.
ETFs
are traded on an exchange and generally hold a portfolio of securities,
commodities or commodity futures and/or currencies that are designed to
replicate an index. Some ETFs are actively managed and instead of replicating an
index, they seek to outperform an index.
7 Invesco
Balanced-Risk Allocation Fund
ETNs
are senior, unsecured, unsubordinated debt securities issued by a bank or other
sponsor, the returns of which are linked to the performance of a particular
market, asset, index, benchmark or strategy. ETNs are traded on an exchange;
however, investors can also hold an ETN until maturity. At maturity, the issuer
pays to the investor a cash amount equal to the principal amount, multiplied by
a factor that represents the performance of the referenced market, asset, index,
benchmark or strategy.
A
commodity-linked note is a debt security issued by a bank or other sponsor that pays a
return linked to the performance of a commodities index or basket of commodity
futures contracts. In some cases, the return will be based on a multiple of the
performance of the index or basket and this embedded leverage will magnify the
positive return or losses the Fund earns from these notes as compared to the
performance of the index or basket.
A
futures contract is a standardized agreement between two parties to buy or sell a
specified quantity of an underlying asset at a specified price at a specified
future time, with both the purchaser and the seller equally obligated to
complete the transaction at that future time. The value of a futures contract
tends to increase and decrease in tandem with the value of the underlying asset.
Depending on the terms of the particular contract, futures contracts are settled
by purchasing an offsetting contract, physically delivering the underlying asset
on the settlement date or paying a cash settlement amount on the settlement
date.
An
option is an agreement between two parties that gives the purchaser of the option the
right to buy or sell a particular asset (commonly a stock (including a share of
an ETF), a bond, an index, a currency or a futures contract) at a later date at
an agreed upon price referred to as the “strike” price. A call option gives the
purchaser of the option the right (but not the obligation) to buy the underlying
asset at the strike price, while a put option gives the purchaser the right (but
not the obligation) to sell the underlying asset at the strike price. In either
case, the writer (seller) of the option incurs the corresponding obligation to
fulfill the transaction if the option is exercised. The price of an option
derives from the difference between the strike price and the value of the
underlying asset, the expected volatility of that underlying asset and the time
remaining until the expiration of the option.
By
selling put and call options, the Fund receives a premium from the option buyer, which
increases the Fund’s return if the option is closed at a gain or expires
out-of-the-money. An option is “out-of-the-money” if the strike price of the
option is below (for a put) or above (for a call) the value of the relevant
underlying asset. If, however, the strike price of the option is above (for a
put) or below (for a call) the value of the relevant underlying asset and/or the
option’s price increases above the price at which it was sold, the Fund may (1)
if the buyer has not exercised the option, close the option contract at a loss
or (2) if the buyer has exercised the option, (i) pay the buyer the difference
between the strike price and the value of underlying asset, or (ii) deliver (if
a call) or purchase (if a put) the underlying asset, depending on whether the
option is cash settled or deliverable.
A
swap contract is an agreement between two parties pursuant to which the parties
exchange payments at specified dates on the basis of a specified notional
amount, with the payments calculated by reference to the price, value or level
of a specified underlying asset, which can be a security, index, reference rate,
commodity, currency or other asset, or a basket of any of the foregoing. The
notional amount of a swap is based on the nominal or face amount of the
reference asset that is used to calculate payments made under that swap; the
notional amount typically is not exchanged between counterparties. The parties
to the swap use variations in the price, value or level of the underlying asset
to calculate payments between them through the life of the swap.
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 Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including
the United States, as well as North Atlantic Treaty Organization (NATO) member
countries and the European Union, issued broad-ranging economic sanctions
against Russia. The war in Ukraine (and the potential for further sanctions in
response to Russia’s continued military activity) may escalate. These 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 including, but not limited
to, energy and financials. Russia may take additional countermeasures or
retaliatory actions (including cyberattacks), which could exacerbate negative
consequences on global financial markets. The duration of the conflict and
corresponding sanctions and related events 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 Russian issuers or the adjoining geographic regions.
◾
COVID-19. The “COVID-19”
strain of coronavirus has resulted in instances of market closures and
dislocations, extreme volatility, liquidity constraints and increased trading
costs. Efforts to contain its spread have resulted in travel restrictions,
disruptions of healthcare systems, business operations (including business
closures) and supply chains, layoffs, lower consumer demand and employee
availability, and defaults and credit downgrades, among other significant
economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political,
social and economic risks locally or globally and cause general concern and
uncertainty. The full economic impact and ongoing effects of COVID-19 (or other
future
8 Invesco
Balanced-Risk Allocation Fund
epidemics or
pandemics) at the macro-level and on individual businesses are unpredictable and
may result in significant and prolonged effects on the Fund’s
performance.
Correlation
Risk. Changes in the
value of the asset classes in which the Fund invests or specific investments
within those asset classes may not track or offset each other in the manner
anticipated by the Adviser. Because the Fund’s investment strategy seeks to
balance risk across three asset classes and, within each asset class, to balance
risk across different countries and investments, to the extent either the three
asset classes or the selected countries and investments become correlated in a
way not anticipated by the Adviser, the Fund’s risk allocation process may not
produce the intended result of balancing risk and could instead result in
magnified risks and loss.
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. These risks are greater for the Fund than most
other mutual funds because the Fund will implement its investment strategy
primarily through derivative instruments rather than direct investments in
stocks/bonds.
◾
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 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.
◾
Forward
Foreign Currency Contracts Risk. Forward
foreign currency contracts are used to lock in the U.S. dollar price of a
security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign
currency. They are subject to the risk that anticipated currency movements will
not be accurately predicted or do not correspond accurately to changes in the
value of the fund's holdings, which could result in losses and additional
transaction costs. The use of forward contracts could reduce performance if
there are unanticipated changes in currency prices. A contract to sell a foreign
currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in
losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of
short-term currency market movements is extremely difficult, and the successful
execution of a short-term hedging strategy is highly uncertain. The precise
matching of the amounts under forward contracts and the value of the securities
involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market
movements between the date the forward contract is entered into and the date it
is sold. Investments in forward contracts involve the risk that anticipated
currency movements will not be accurately predicted, causing the Fund to sustain
losses on these contracts and to pay additional transaction costs.
◾
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
9 Invesco
Balanced-Risk Allocation Fund
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.
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.
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.
Debt
Securities Risk. The prices of debt
securities held by the Fund will be affected by changes in interest rates, the
creditworthiness of the issuer and other factors. An increase in prevailing
interest rates typically causes the value of existing debt securities to fall
and often has a greater impact on longer-duration debt securities and higher
quality debt securities. Falling interest rates will cause the Fund to reinvest
the proceeds of debt securities that have been repaid by the issuer at lower
interest rates. Falling interest rates may also reduce the Fund’s distributable
income because interest payments on floating rate debt instruments held by the
Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest
payments and/or to repay principal in a timely manner. If an issuer seeks to
restructure the terms of its borrowings or the Fund is required to seek recovery
upon a
default in the
payment of interest or the repayment of principal, the Fund may incur additional
expenses. Changes in an issuer’s financial strength, the market’s perception of
such strength or in the credit rating of the issuer or the security may affect
the value of debt securities. The Adviser’s credit analysis may fail to
anticipate such changes, which could result in buying a debt security at an
inopportune time or failing to sell a debt security in advance of a price
decline or other credit event.
Commodity
Risk. The Fund may have
investment exposure to the commodities markets and/or a particular sector of the
commodities markets, which may subject the Fund to greater volatility than
investments in traditional securities, such as stocks and bonds. The commodities
markets may fluctuate widely based on a variety of factors, including changes in
overall market movements, domestic and foreign political and economic events and
policies, war, acts of terrorism, changes in domestic or foreign interest rates
and/or investor expectations concerning interest rates, domestic and foreign
inflation rates and investment and trading activities of mutual funds, hedge
funds and commodities funds. Prices of various commodities may also be affected
by factors such as drought, floods, weather, livestock disease, embargoes,
tariffs and other regulatory developments. The prices of commodities can also
fluctuate widely due to supply and demand disruptions in major producing or
consuming regions and changes in transportation, handling and storage costs.
Certain commodities may be produced in a limited number of countries and may be
controlled by a small number of producers or groups of producers. As a result,
political, economic and supply related events in such countries could have a
disproportionate impact on the prices of such commodities. Because the Fund’s
performance may be linked to the performance of volatile commodities, investors
should be willing to assume the risks of potentially significant fluctuations in
the value of the Fund’s shares.
Commodities
Tax Risk. The tax treatment
of commodity-linked derivative instruments may be adversely affected by changes
in legislation, regulations or other legally binding authority. If, as a result
of any such adverse action, the income of the Fund from certain commodity-linked
derivatives was treated as non-qualifying income, the Fund might fail to qualify
as a regulated investment company and be subject to federal income tax at the
Fund level. As a regulated investment company, the Fund must derive at least 90%
of its gross income for each taxable year from sources treated as qualifying
income under the Internal Revenue Code of 1986, as amended (the Code). The Fund
has received private letter rulings from the Internal Revenue Service (IRS)
confirming that income derived from the Fund's investments in the Subsidiary and
a form of commodity-linked note constitutes qualifying income to the Fund.
However, the portion of such rulings relating to the treatment of a corporation
as a regulated investment company that require a determination of whether a
financial instrument or position is a security under section 2(a)(36) of the
1940 Act was revoked because of changes in the IRS's position. (A financial
instrument or position that constitutes a security under section 2(a)(36) of the
1940 Act generates qualifying income for a corporation taxed as a regulated
investment company.) Accordingly, the Fund may invest in certain
commodity-linked notes: (a) directly, relying on an opinion of counsel
confirming that income from such investments should be qualifying income because
such commodity-linked notes constitute securities under section 2(a)(36) of the
1940 Act or (b) indirectly through the Subsidiary. Should the IRS issue further
guidance, or Congress enact legislation, that adversely affects the tax
treatment of the Fund’s use of commodity-linked notes or the Subsidiary (which
guidance might be applied to the Fund retroactively), it could limit the Fund’s
ability to pursue its investment strategy and the Fund might not qualify as a
regulated investment company for one or more years. In this event, the Fund’s
Board of Trustees may authorize a significant change in investment strategy or
other action. In lieu of potential disqualification, the Fund is permitted to
pay a tax for certain failures to satisfy the income requirement, which, in
general, are limited to those due to reasonable cause and not willful neglect.
The Fund also may incur transaction and other costs to comply with any new or
additional guidance from the IRS.
10 Invesco
Balanced-Risk Allocation Fund
Changing
Fixed Income Market Conditions Risk.
Increases in the
federal funds and equivalent foreign rates or other changes to monetary policy
or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those
with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer
market-making capacity may also potentially lead to heightened volatility and
reduced liquidity in the fixed income markets. As a result, the value of the
Fund’s investments and share price may decline. Changes in
central bank
policies
could
also result in higher than normal redemptions by shareholders, which could
potentially increase the Fund’s portfolio turnover rate and transaction costs
and potentially lower the Fund’s performance returns.
Foreign
Securities Risk. The value of the
Fund's foreign investments may be adversely affected by political and social
instability in the home countries of the issuers of the investments, by changes
in economic or taxation policies in those countries, or by the difficulty in
enforcing obligations in those countries. Foreign investments also involve the
risk of the possible seizure, nationalization or expropriation of the issuer or
foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions
such as exchange controls. Foreign companies generally may be subject to less
stringent regulations than U.S. companies, including financial reporting
requirements and auditing and accounting controls, and may therefore be more
susceptible to fraud or corruption. Also, there may be less publicly available
information about companies in certain foreign countries than about U.S.
companies making it more difficult for the Adviser to evaluate those companies.
The laws of certain countries may put limits on the Fund’s ability to recover
its assets held at a foreign bank if the foreign bank, depository or issuer of a
security, or any of their agents, goes bankrupt. Trading in many foreign
securities may be less liquid and more volatile than U.S. securities due to the
size of the market or other factors. Changes in political and economic factors
in one country or region could adversely affect conditions in another country or
region. Investments in foreign securities may also expose the Fund to time-zone
arbitrage risk. At times, the Fund may emphasize investments in a particular
country or region and may be subject to greater risks from adverse events that
occur in that country or region. Unless the Fund has hedged its foreign currency
exposure, foreign securities risk also involves the risk of negative foreign
currency rate fluctuations, which may cause the value of securities denominated
in such foreign currency (or other instruments through which the Fund has
exposure to foreign currencies) to decline in value. Currency exchange rates may
fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful. For instance, currency forward contracts, if
used by the Fund, could reduce performance if there are unanticipated changes in
currency exchange rates.
Emerging
Market Securities Risk. Emerging markets
(also referred to as developing markets) are generally subject to greater market
volatility, political, social and economic instability, uncertainty regarding
the existence of trading markets and more governmental limitations on foreign
investment than more developed markets. In addition, companies operating in
emerging markets may have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be
subject to lower trading volume and greater price fluctuations than companies in
more developed markets. Unexpected market closures may also affect investments
in emerging markets. Settlement procedures may differ from those of more
established securities markets, and settlement delays may result in the
inability to invest assets or dispose of portfolio securities in a timely
manner. As a result there could be subsequent declines in value of the portfolio
security, a decrease in the level of liquidity of the portfolio, or, if there is
a contract to sell the security, a possible liability to the
purchaser.
Such
countries’ economies may be more dependent on relatively few industries or
investors that may be highly vulnerable to local and global
changes. Emerging
market countries may also have higher rates of inflation and more rapid and
extreme fluctuations in inflation rates and greater sensitivity to interest rate
changes. Further, companies in emerging market countries generally may be
subject to less stringent regulatory, disclosure, financial reporting,
accounting, auditing and recordkeeping standards than companies in more
developed countries and, as a result, the nature and quality of such information
may vary. Information about such companies may be less available and reliable
and, therefore, the ability to conduct adequate due diligence in emerging
markets may be limited which can impede the Fund’s ability to evaluate such
companies. In addition, certain emerging market countries may impose material
limitations on PCAOB
inspection,
investigation and enforcement capabilities, which can hinder the PCAOB’s ability
to engage in independent oversight or inspection of accounting firms located in
or operating in certain emerging markets.
There
is no
guarantee that the quality of financial reporting or the audits conducted by
audit firms of emerging market issuers meet PCAOB standards.
Securities
law in many emerging market countries is relatively new and unsettled.
Therefore, laws regarding foreign investment in emerging market securities,
securities regulation, title to securities, and shareholder rights may change
quickly and unpredictably. Emerging market countries also may have less
developed legal systems allowing for enforcement of private property rights
and/or redress for injuries to private property (including bankruptcy,
confiscatory taxation, expropriation, nationalization of a company’s assets,
restrictions on foreign ownership of local companies, restrictions on
withdrawing assets from the country, protectionist measures and practices such
as share blocking). Certain governments may require approval for the
repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce
such actions, may be limited and shareholder claims may be difficult or
impossible to pursue. In addition, the taxation systems at the federal, regional
and local levels in emerging market countries may be less transparent and
inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud than
developed market countries, as well as counterparties and financial institutions
with less financial sophistication, creditworthiness and/or resources. The
governments in some emerging market countries have been engaged in programs to
sell all or part of their interests in government-owned or controlled
enterprises. However, in certain emerging market countries, the ability of
foreign entities to participate in privatization programs may be limited by
local law. There can be no assurance that privatization programs will be
successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures,
and lack of timely information.
Foreign
Government Debt Risk.
Investments in
foreign government debt securities (sometimes referred to as sovereign debt
securities) involve certain risks in addition to those relating to foreign
securities or debt securities generally. The issuer of the debt or the
governmental authorities that control the repayment of the debt may be unable or
unwilling to repay principal or interest when due in accordance with the terms
of such debt, and the Fund may have limited recourse in the event of a default
against the defaulting government. A foreign government debtor’s willingness or
ability to repay principal and pay interest in a timely manner may be affected
by, among other factors, its cash flow situation, the extent of its foreign
currency reserves, the availability of sufficient foreign exchange, the relative
size of the debt burden, the foreign government debtor’s policy toward its
principal international lenders and local political constraints. Certain issuers
of foreign government debt may be dependent on disbursements from foreign
governments, multinational agencies and other entities to reduce principal and
interest arrearages on their debt. Without the approval of debt
11 Invesco
Balanced-Risk Allocation Fund
holders, some
governmental debtors have in the past been able to reschedule or restructure
their debt payments or declare moratoria on payments.
LIBOR
Transition Risk. The Fund may have
investments in financial instruments that utilize the London Interbank Offered
Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate
calculations. LIBOR is intended to measure the rate generally at which banks can
lend and borrow from one another in the relevant currency on an unsecured basis.
In the years following the 2008 financial crisis, the integrity of LIBOR was
increasingly questioned because several banks contributing to its calculation
were accused of rate manipulation and because of a general contraction in the
unsecured interbank lending market. As a result, regulators and financial
industry working groups in several jurisdictions have worked over the past
several years to identify alternative reference rates (“ARRs”) to replace LIBOR
and to assist with the transition to the new ARRs. For example, the Federal
Reserve Bank of New York has identified the Secured Overnight Financing Rate
(“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have
proposed other interbank offered rates, such as the Sterling Overnight Index
Average
(“SONIA”)
and
other replacement rates,
which
could also be adopted. Consequently, the publication of most LIBOR rates ceased
at the end of 2021, but a selection of widely used USD LIBOR rates continues to
be published until June 2023 to allow for an orderly transition away from these
rates. Additionally, key regulators have instructed banking institutions to
cease entering into new contracts that reference these USD LIBOR settings after
December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition and its
effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics of any ARRs or
financial instruments in which the Fund invests that utilize ARRs will be
similar to or produce the same value or economic equivalence as LIBOR or that
these instruments will have the same volume or liquidity. Additionally, although
regulators have generally prohibited banking institutions from entering into new
contracts that reference those USD LIBOR settings that continue to exist, there
remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by
which a replacement interest rate will be identified and implemented into these
instruments when USD LIBOR is ultimately discontinued. The effects of such
uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could
result in losses to the Fund.
Commodity-Linked
Notes Risk. In addition to
risks associated with the underlying commodities, investments in
commodity-linked notes may be subject to additional risks, such as non-payment
of interest and loss of principal, counterparty risk, lack of a secondary market
and risk of greater volatility than traditional equity and debt
securities.
The
Fund might not receive all or a portion of the interest due on its investment or a
return of its principal if there is a loss of value of the commodity, commodity
index or other economic variable to which the interest is linked. A liquid
secondary market may not exist for certain commodity-linked notes, which may
make it difficult for the Fund to sell them at an acceptable time or price or to
accurately value them. Commodity-linked notes are also subject to counterparty
risk, which is the risk that the issuer of the commodity-linked note will
default or become bankrupt and not make timely payment of principal and
interest. The value of the commodity-linked notes the Fund buys may fluctuate
significantly because the values of the underlying investments to which they are
linked are themselves volatile. Additionally, certain commodity-linked notes
employ “economic” leverage by requiring payment by the issuer of an amount that
is a multiple of the price increase or decrease of the underlying commodity,
commodity index, or other economic variable. For example, the value of a
three-times leveraged note will change by a magnitude of three for every
percentage change (positive or negative) in the value of the underlying
commodity, index or other economic variable. Such economic leverage will
increase the
volatility of the value of these commodity-linked notes and the Fund to the
extent it invests in such notes.
Short
Position Risk. The Fund will
incur a loss on a short position if the price of the asset sold short increases
from the short sale price. Because the Fund’s potential loss on a short position
arises from increases in the value of the asset sold short, the extent of such
loss, like the price of the asset sold short, is theoretically unlimited. Short
sales are speculative transactions and involve greater reliance on the Adviser’s
ability to accurately anticipate the future value of an asset or markets in
general. Any gain on a short position is decreased, and any loss is increased,
by the amount of any payment, dividend, interest or other transaction costs that
the Fund may be required to pay with respect to the asset sold short. The
counterparty to a short position or market factors, such as a sharp increase in
prices, may prevent the Fund from closing out a short position at a desirable
time or price and may reduce or eliminate any gain or result in a loss. In a
rising market, the Fund’s short positions will cause the Fund to underperform
the overall market and its peers that do not engage in shorting. If the Fund
holds both long and short positions, both positions may decline simultaneously,
in which case the short positions will not provide any buffer (hedge) from
declines in value of the Fund’s long positions. Certain types of short positions
involve leverage, which may exaggerate any losses, potentially more than the
actual cost of the investment, and will increase the volatility of the Fund’s
returns.
Exchange-Traded
Funds Risk. In addition to
the risks associated with the underlying assets held by the exchange-traded
fund, investments in exchange-traded funds are subject to the following
additional risks: (1) the market price of an exchange-traded fund’s shares may
trade above or below its net asset value; (2) an active trading market for the
exchange-traded fund’s shares may not develop or be maintained; (3) trading an
exchange-traded fund’s shares may be halted if the listing exchange’s officials
deem such action appropriate; (4) a passively managed exchange-traded fund may
not accurately track the performance of the reference asset; and (5) a passively
managed exchange-traded fund would not necessarily sell a security because the
issuer of the security was in financial trouble unless the security is removed
from the index that the exchange-traded fund seeks to track. Investment in
exchange-traded funds may involve duplication of management fees and certain
other expenses, as the Fund indirectly bears its proportionate share of any
expenses paid by the exchange-traded funds in which it invests. Further, certain
exchange-traded funds in which the Fund may invest are leveraged. Investing in
leveraged exchange-traded funds may result in economic leverage, which does not
result in the possibility of the Fund incurring obligations beyond its
investments, but nonetheless permits the Fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater
volatility.
Exchange-Traded
Notes Risk. Exchange-traded
notes are subject to the credit risk of the issuer, and the value of the
exchange-traded note may drop due to a downgrade in the issuer's credit rating,
despite the underlying market benchmark or assets remaining unchanged. The value
of an exchange-traded note may also be influenced by time to maturity, level of
supply and demand for the exchange-traded note, volatility and lack of liquidity
in the underlying market, changes in the applicable interest rates, and
economic, legal, political, or geographic events that affect the referenced
underlying market or assets. Exchange-traded notes are also subject to the risk
that the other party to the contract will not fulfill its contractual
obligations, which may cause losses or additional costs to the Fund. When the
Fund invests in exchange-traded notes it will bear its proportionate share of
any fees and expenses borne by the exchange-traded note. For certain
exchange-traded notes, there may be restrictions on the Fund’s right to redeem
its investment in an exchange-traded note, which is meant to be held until
maturity.
Factor-Based
Strategy Risk. Although the Fund
may have investments that track equity indices that emphasize exposure to
companies associated with certain characteristics, known as style factors, there
is no
12 Invesco
Balanced-Risk Allocation Fund
guarantee that this
strategy will be successful. In addition, there may be periods when a particular
style of investing or factor is out of favor and therefore, during such periods,
the investment performance of the Fund may suffer.
Quantitative
Models Risk. Quantitative
models are based upon many factors that measure individual securities relative
to each other. Quantitative models may be highly reliant on the gathering,
cleaning, culling and analysis of large amounts of data from third parties and
other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use
of the quantitative models. The factors used in models may not identify
securities that perform well in the future, and the securities selected may
perform differently from the market as a whole or from their expected
performance.
Volatility
Risk. Certain of the
Fund's investments may appreciate or decrease significantly in value over short
periods of time. This may cause the Fund’s net asset value per share to
experience significant increases or declines in value over short periods of
time.
Subsidiary
Risk. By investing in
the Subsidiary, the Fund is indirectly exposed to risks associated with the
Subsidiary’s investments. The derivatives and other investments held by the
Subsidiary are generally similar to those that are permitted to be held by the
Fund and are subject to the same risks that apply to similar investments if held
directly by the Fund. There can be no assurance that the investment objective of
the Subsidiary will be achieved. The Subsidiary is not registered under the 1940
Act and, except as otherwise noted in the Fund’s prospectus, is not subject to
the investor protections of the 1940 Act. In addition, changes in the laws of
the United States and/or the Cayman Islands could result in the inability of the
Fund and/or the Subsidiary to operate as described in this prospectus and the
SAI and could adversely affect the Fund. For example, the government of the
Cayman Islands does not currently impose any income, corporate or capital gains
tax, estate duty, inheritance tax, gift tax or withholding tax on the
Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay
Cayman Islands taxes, Fund shareholders would likely suffer decreased investment
returns.
Money
Market Fund Risk. Although money
market funds generally seek to preserve the value of an investment at $1.00 per
share, the Fund may lose money by investing in money market funds. A money
market fund's sponsor has no legal obligation to provide financial support to
the money market fund. The credit quality of a money market fund's holdings can
change rapidly in certain markets, and the default of a single holding could
have an adverse impact on the money market fund's share price. A money market
fund's share price can also be negatively affected during periods of high
redemption pressures, illiquid markets and/or significant market
volatility.
U.S.
Government Obligations Risk.
Obligations of U.S.
Government agencies and authorities receive varying levels of support and may
not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be
given that the U.S. Government will provide financial support to its agencies
and authorities if it is not obligated by law to do so.
Financial
Markets Regulatory Risk. Policy changes by
the U.S. government or its regulatory agencies and political events within the
U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a
long-term budget and deficit reduction plan or other legislation aimed at
addressing financial or economic conditions, the threat of a federal government
shutdown, and threats not to increase or suspend the federal government’s debt
limit, may affect investor and consumer confidence, increase volatility in the
financial markets, perhaps suddenly and to a significant degree, result in
higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may
adversely impact the Fund’s operations, universe of potential investment
options, and return potential.
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. Because the
Fund’s investment process relies heavily on its asset allocation process, market
movements that are counter to the portfolio managers’ expectations may have a
significant adverse effect on the Fund’s net asset value. 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 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 1555 Peachtree
Street, N.E., 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.
Regulation
under the Commodity Exchange Act
The Adviser is
registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act
and the rules of the CFTC and is subject to CFTC regulation with respect to the
Fund. The CFTC has adopted rules regarding the disclosure, reporting and
recordkeeping requirements that apply with respect to the Fund as a result of
the Adviser’s registration as a CPO. Generally, these rules allow for
substituted compliance with CFTC disclosure and shareholder reporting
requirements, based on the Adviser’s compliance with comparable SEC
requirements. This means that for most of the CFTC’s disclosure and shareholder
reporting requirements applicable to the Adviser as the Fund’s CPO, the
Adviser’s compliance with SEC disclosure and shareholder reporting requirements
will be deemed to fulfill the Adviser’s CFTC compliance obligations. However, as
a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a
“commodity trading advisor” (CTA) but, with respect to the Fund, relies on an
exemption from CTA regulation available for a CTA that also serves as the Fund’s
CPO.
Adviser
Compensation
During the fiscal
year ended October 31, 2022, the Adviser received compensation of 0.86% of the
Fund's average daily net assets, after fee waiver and/or expense reimbursement,
if any.
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.
13 Invesco
Balanced-Risk Allocation Fund
Portfolio
Managers
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Fund’s portfolio:
◾
Mark Ahnrud, CFA,
Portfolio Manager, who has been responsible for the Fund since 2009 and has been
associated with Invesco and/or its affiliates since 2000.
◾
John Burrello, CFA,
Portfolio Manager, who has been responsible for the Fund since 2022 and has been
associated with Invesco and/or its affiliates since 2012.
◾
Chris Devine, CFA,
Portfolio Manager, who has been responsible for the Fund since 2009 and has been
associated with Invesco and/or its affiliates since 1998.
◾
Scott Hixon, CFA,
Portfolio Manager, who has been responsible for the Fund since 2009 and has been
associated with Invesco and/or its affiliates since 1994.
◾
Christian Ulrich,
CFA, Portfolio Manager, who has been responsible for the Fund since 2009 and has
been associated with Invesco and/or its affiliates since 2000.
◾
Scott Wolle, CFA,
Portfolio Manager, who has been responsible for the Fund since 2009 and has been
associated with Invesco and/or its affiliates since 1999.
The
portfolio managers are assisted by investment professionals from Invesco's Global
Asset Allocation Team. Members of the team may change from time to
time.
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 expects,
based on its investment objective and strategies, that its distributions, if
any, will consist of ordinary income, capital gains, or some combination of
both.
Dividends
The Fund generally
declares and pays dividends from net investment income, if any,
annually.
Capital
Gains Distributions
The Fund generally
distributes long-term and short-term capital gains (net of any available capital
loss carryovers), if any, at least annually. Capital gains distributions may
vary considerably from year to year as a result of the Fund's normal investment
activities and cash flows. During a time of economic volatility, the Fund may
experience capital losses and unrealized depreciation in value of investments,
the effect of which may be to reduce or eliminate capital gains distributions
for a period of time. Even though the
Fund may experience
a current year loss, it may nonetheless distribute prior year capital
gains.
14 Invesco
Balanced-Risk Allocation Fund
Consolidated Financial Highlights
The consolidated
financial highlights show the Fund’s financial history for the past five fiscal
years or, if shorter, the period of operations of the Fund or any of its share
classes. The consolidated financial highlights table is intended to help you
understand the 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 (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
consolidated financial statements, is included in the Fund’s annual report,
which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income
(loss)(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized) |
Total
from
investment
operations |
Dividends
from
net
investment
income |
Distributions
from
net
realized
gains |
Total
distributions |
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed |
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed |
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 10/31/22 |
$12.09 |
$(0.04) |
$(1.29) |
$(1.33) |
$(1.43) |
$(1.09) |
$(2.52) |
$8.24 |
(13.99)% |
$852,412 |
1.31% |
1.35% |
(0.47)% |
92% |
|
Year
ended 10/31/21 |
10.12 |
(0.15) |
2.25 |
2.10 |
(0.13) |
— |
(0.13) |
12.09 |
20.91 |
1,093,094 |
1.31 |
1.33 |
(1.26) |
16 |
|
Year
ended 10/31/20 |
11.33 |
(0.05) |
0.01 |
(0.04) |
(0.67) |
(0.50) |
(1.17) |
10.12 |
(0.55) |
831,513 |
1.24 |
1.30 |
(0.53) |
81 |
|
Year
ended 10/31/19 |
10.21 |
0.10 |
1.02 |
1.12 |
— |
— |
— |
11.33 |
10.97 |
968,345 |
1.24 |
1.29 |
0.95 |
11 |
|
Year
ended 10/31/18 |
11.28 |
0.03 |
(0.40) |
(0.37) |
— |
(0.70) |
(0.70) |
10.21 |
(3.57) |
1,016,131 |
1.21 |
1.27 |
0.32 |
116 |
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 10/31/22 |
11.36 |
(0.11) |
(1.19) |
(1.30) |
(1.31) |
(1.09) |
(2.40) |
7.66 |
(14.57) |
100,109 |
2.06 |
2.10 |
(1.22) |
92 |
|
Year
ended 10/31/21 |
9.50 |
(0.22) |
2.12 |
1.90 |
(0.04) |
— |
(0.04) |
11.36 |
20.04 |
167,794 |
2.06 |
2.08 |
(2.01) |
16 |
|
Year
ended 10/31/20 |
10.69 |
(0.12) |
0.00 |
(0.12) |
(0.57) |
(0.50) |
(1.07) |
9.50 |
(1.36) |
349,294 |
1.99 |
2.05 |
(1.28) |
81 |
|
Year
ended 10/31/19 |
9.70 |
0.02 |
0.97 |
0.99 |
— |
— |
— |
10.69 |
10.21 |
527,251 |
1.99 |
2.04 |
0.20 |
11 |
|
Year
ended 10/31/18 |
10.83 |
(0.04) |
(0.39) |
(0.43) |
— |
(0.70) |
(0.70) |
9.70 |
(4.31) |
735,308 |
1.96 |
2.02 |
(0.43) |
116 |
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 10/31/22 |
11.82 |
(0.07) |
(1.25) |
(1.32) |
(1.39) |
(1.09) |
(2.48) |
8.02 |
(14.21) |
16,270 |
1.56 |
1.60 |
(0.72) |
92 |
|
Year
ended 10/31/21 |
9.90 |
(0.17) |
2.19 |
2.02 |
(0.10) |
— |
(0.10) |
11.82 |
20.52 |
17,666 |
1.56 |
1.58 |
(1.51) |
16 |
|
Year
ended 10/31/20 |
11.10 |
(0.08) |
0.02 |
(0.06) |
(0.64) |
(0.50) |
(1.14) |
9.90 |
(0.77) |
15,202 |
1.49 |
1.55 |
(0.78) |
81 |
|
Year
ended 10/31/19 |
10.02 |
0.07 |
1.01 |
1.08 |
— |
— |
— |
11.10 |
10.78 |
18,343 |
1.49 |
1.54 |
0.70 |
11 |
|
Year
ended 10/31/18 |
11.11 |
0.01 |
(0.40) |
(0.39) |
— |
(0.70) |
(0.70) |
10.02 |
(3.82) |
19,989 |
1.46 |
1.52 |
0.07 |
116 |
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 10/31/22 |
12.34 |
(0.02) |
(1.31) |
(1.33) |
(1.46) |
(1.09) |
(2.55) |
8.46 |
(13.66) |
792,547 |
1.06 |
1.10 |
(0.22) |
92 |
|
Year
ended 10/31/21 |
10.33 |
(0.12) |
2.29 |
2.17 |
(0.16) |
— |
(0.16) |
12.34 |
21.18 |
1,062,698 |
1.06 |
1.08 |
(1.01) |
16 |
|
Year
ended 10/31/20 |
11.55 |
(0.03) |
0.01 |
(0.02) |
(0.70) |
(0.50) |
(1.20) |
10.33 |
(0.34) |
1,000,148 |
0.99 |
1.05 |
(0.28) |
81 |
|
Year
ended 10/31/19 |
10.37 |
0.13 |
1.05 |
1.18 |
— |
— |
— |
11.55 |
11.38 |
1,431,442 |
0.99 |
1.04 |
1.20 |
11 |
|
Year
ended 10/31/18 |
11.43 |
0.06 |
(0.42) |
(0.36) |
— |
(0.70) |
(0.70) |
10.37 |
(3.42) |
1,718,473 |
0.96 |
1.02 |
0.57 |
116 |
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 10/31/22 |
12.35 |
(0.02) |
(1.31) |
(1.33) |
(1.47) |
(1.09) |
(2.56) |
8.46 |
(13.72) |
12,874 |
1.04 |
1.08 |
(0.20) |
92 |
|
Year
ended 10/31/21 |
10.34 |
(0.12) |
2.30 |
2.18 |
(0.17) |
— |
(0.17) |
12.35 |
21.22 |
16,750 |
1.02 |
1.04 |
(0.97) |
16 |
|
Year
ended 10/31/20 |
11.56 |
(0.03) |
0.02 |
(0.01) |
(0.71) |
(0.50) |
(1.21) |
10.34 |
(0.26) |
15,707 |
0.94 |
1.00 |
(0.23) |
81 |
|
Year
ended 10/31/19 |
10.38 |
0.14 |
1.04 |
1.18 |
— |
— |
— |
11.56 |
11.37 |
45,497 |
0.92 |
0.97 |
1.27 |
11 |
|
Year
ended 10/31/18 |
11.43 |
0.07 |
(0.42) |
(0.35) |
— |
(0.70) |
(0.70) |
10.38 |
(3.34) |
50,691 |
0.92 |
0.98 |
0.61 |
116 |
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 10/31/22 |
12.38 |
(0.01) |
(1.32) |
(1.33) |
(1.47) |
(1.09) |
(2.56) |
8.49 |
(13.62) |
38,385 |
0.97 |
1.01 |
(0.13) |
92 |
|
Year
ended 10/31/21 |
10.37 |
(0.11) |
2.30 |
2.19 |
(0.18) |
— |
(0.18) |
12.38 |
21.26 |
49,008 |
0.95 |
0.97 |
(0.90) |
16 |
|
Year
ended 10/31/20 |
11.59 |
(0.02) |
0.02 |
0.00 |
(0.72) |
(0.50) |
(1.22) |
10.37 |
(0.21) |
159,353 |
0.86 |
0.92 |
(0.15) |
81 |
|
Year
ended 10/31/19 |
10.40 |
0.15 |
1.04 |
1.19 |
— |
— |
— |
11.59 |
11.44 |
255,753 |
0.87 |
0.92 |
1.32 |
11 |
|
Year
ended 10/31/18 |
11.44 |
0.07 |
(0.41) |
(0.34) |
— |
(0.70) |
(0.70) |
10.40 |
(3.24) |
398,406 |
0.86 |
0.92 |
0.67 |
116 |
|
| ||||||||||||||
|
(a) |
Calculated
using average shares outstanding. |
|
(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 the 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) |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if
applicable. |
15 Invesco
Balanced-Risk Allocation Fund
Hypothetical Investment and Expense Information
In connection with
the final settlement reached between Invesco and certain of its affiliates with
certain regulators, including the New York Attorney General’s Office, the SEC
and the Colorado Attorney General’s Office (the settlement) arising out of
certain market timing and unfair pricing allegations made against Invesco and
certain of its affiliates, Invesco and certain of its affiliates agreed, among
other things, to disclose certain hypothetical information regarding investment
and expense information to Fund shareholders. The chart below is intended to
reflect the annual and cumulative impact of the Fund’s expenses, including
investment advisory fees and other Fund costs, on the Fund’s returns over a
10-year period. The example reflects the following:
◾
You invest $10,000
in the Fund and hold it for the entire 10-year period;
◾
Your investment has
a 5% return before expenses each year;
◾
The Fund’s current
annual expense ratio includes, if applicable, any contractual fee waiver or
expense reimbursement that would apply for the period for which it was
committed;
◾
Hypotheticals both
with and without any applicable initial sales charge applied; and
◾
There is no sales
charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio for the
Fund’s classes for any of the years shown. This is only a hypothetical
presentation made to illustrate what expenses and returns would be under the
above scenarios; your actual returns and expenses are likely to differ (higher
or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge) |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.38% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
(2.08%) |
1.43% |
5.06% |
8.82% |
12.71% |
16.75% |
20.93% |
25.26% |
29.74% |
34.39% |
|
End
of Year Balance |
$9,792.09 |
$10,142.65 |
$10,505.75 |
$10,881.86 |
$11,271.43 |
$11,674.95 |
$12,092.91 |
$12,525.84 |
$12,974.26 |
$13,438.74 |
|
Estimated
Annual Expenses |
$682.77 |
$141.54 |
$146.60 |
$151.85 |
$157.29 |
$162.92 |
$168.75 |
$174.79 |
$181.05 |
$187.53 |
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge) |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.38% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
1.42% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.62% |
7.33% |
11.17% |
15.15% |
19.27% |
23.54% |
27.97% |
32.55% |
37.29% |
42.21% |
|
End
of Year Balance |
$10,362.00 |
$10,732.96 |
$11,117.20 |
$11,515.20 |
$11,927.44 |
$12,354.44 |
$12,796.73 |
$13,254.85 |
$13,729.38 |
$14,220.89 |
|
Estimated
Annual Expenses |
$140.50 |
$149.77 |
$155.14 |
$160.69 |
$166.44 |
$172.40 |
$178.57 |
$184.97 |
$191.59 |
$198.45 |
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
2.13% |
2.17% |
2.17% |
2.17% |
2.17% |
2.17% |
2.17% |
2.17% |
1.42% |
1.42% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
2.87% |
5.78% |
8.77% |
11.85% |
15.02% |
18.27% |
21.62% |
25.06% |
29.54% |
34.18% |
|
End
of Year Balance |
$10,287.00 |
$10,578.12 |
$10,877.48 |
$11,185.32 |
$11,501.86 |
$11,827.36 |
$12,162.08 |
$12,506.26 |
$12,953.99 |
$13,417.74 |
|
Estimated
Annual Expenses |
$216.06 |
$226.39 |
$232.79 |
$239.38 |
$246.16 |
$253.12 |
$260.29 |
$267.65 |
$180.77 |
$187.24 |
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.63% |
1.67% |
1.67% |
1.67% |
1.67% |
1.67% |
1.67% |
1.67% |
1.67% |
1.67% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.37% |
6.81% |
10.37% |
14.04% |
17.84% |
21.77% |
25.82% |
30.01% |
34.34% |
38.81% |
|
End
of Year Balance |
$10,337.00 |
$10,681.22 |
$11,036.91 |
$11,404.44 |
$11,784.20 |
$12,176.62 |
$12,582.10 |
$13,001.08 |
$13,434.02 |
$13,881.37 |
|
Estimated
Annual Expenses |
$165.75 |
$175.50 |
$181.35 |
$187.39 |
$193.63 |
$200.07 |
$206.74 |
$213.62 |
$220.73 |
$228.08 |
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.13% |
1.17% |
1.17% |
1.17% |
1.17% |
1.17% |
1.17% |
1.17% |
1.17% |
1.17% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.87% |
7.85% |
11.98% |
16.27% |
20.72% |
25.34% |
30.14% |
35.13% |
40.30% |
45.68% |
|
End
of Year Balance |
$10,387.00 |
$10,784.82 |
$11,197.88 |
$11,626.76 |
$12,072.06 |
$12,534.42 |
$13,014.49 |
$13,512.95 |
$14,030.49 |
$14,567.86 |
|
Estimated
Annual Expenses |
$115.19 |
$123.86 |
$128.60 |
$133.52 |
$138.64 |
$143.95 |
$149.46 |
$155.19 |
$161.13 |
$167.30 |
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.11% |
1.15% |
1.15% |
1.15% |
1.15% |
1.15% |
1.15% |
1.15% |
1.15% |
1.15% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.89% |
7.89% |
12.04% |
16.36% |
20.84% |
25.49% |
30.32% |
35.34% |
40.55% |
45.96% |
|
End
of Year Balance |
$10,389.00 |
$10,788.98 |
$11,204.35 |
$11,635.72 |
$12,083.69 |
$12,548.92 |
$13,032.05 |
$13,533.78 |
$14,054.84 |
$14,595.95 |
|
Estimated
Annual Expenses |
$113.16 |
$121.77 |
$126.46 |
$131.33 |
$136.39 |
$141.64 |
$147.09 |
$152.75 |
$158.63 |
$164.74 |
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.04% |
1.08% |
1.08% |
1.08% |
1.08% |
1.08% |
1.08% |
1.08% |
1.08% |
1.08% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.96% |
8.04% |
12.27% |
16.67% |
21.24% |
26.00% |
30.94% |
36.07% |
41.40% |
46.95% |
|
End
of Year Balance |
$10,396.00 |
$10,803.52 |
$11,227.02 |
$11,667.12 |
$12,124.47 |
$12,599.75 |
$13,093.66 |
$13,606.93 |
$14,140.32 |
$14,694.63 |
|
Estimated
Annual Expenses |
$106.06 |
$114.48 |
$118.96 |
$123.63 |
$128.47 |
$133.51 |
$138.74 |
$144.18 |
$149.84 |
$155.71 |
|
| ||||||||||
1
Your actual
expenses may be higher or lower than those shown.
2
The hypothetical
assumes you hold your investment for a full 10 years. Therefore, any applicable
deferred sales charge that might apply in year one for Class C has not been
deducted.
16 Invesco
Balanced-Risk Allocation Fund
Shareholder Account Information
In addition to the
Fund(s), the Adviser serves as investment adviser to many other Invesco mutual
funds that are offered to investors (Invesco Funds or Funds). The following
information is about all of the Invesco Funds (except Invesco SMA High Yield
Bond Fund and Invesco SMA Municipal Bond Fund) and their share classes that have
different fees and expenses. The prospectuses for Invesco SMA High Yield Bond
Fund and Invesco SMA Municipal Bond Fund contain information relevant to those
funds.
Some
investments in the Funds are made through accounts that are maintained by
intermediaries (and not in the name of an individual investor) and some
investments are made indirectly through products that use the Funds as
underlying investments, such as Retirement and Benefit Plans, funds of funds,
qualified tuition plans, and variable insurance contracts (these products are
generally referred to as conduit investment vehicles). If shares of the Funds
are held in an account maintained by an intermediary or in the name of a conduit
investment vehicle (and not in the name of an individual investor), the
intermediary or conduit investment vehicle may impose rules that differ from,
and/or charge a transaction or other fee in addition to, those described in this
prospectus. As a result, the availability of certain share classes and/or
shareholder privileges or services described in this prospectus will depend on
the policies, procedures and trading platforms of the financial intermediary or
conduit investment vehicle. Accordingly, through your financial intermediary you
may be invested in a share class that is subject to higher annual fees and
expenses than other share classes that are offered in this prospectus. Investing
in a share class subject to higher annual fees and expenses may have an adverse
impact on your investment return. Please consult your financial adviser to
consider your options, including your eligibility to qualify for the share
classes and/or shareholder privileges or services described in this
prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial
intermediaries or for notifying shareholders of any changes to them. Please
consult your financial adviser or other financial intermediary for
details.
Unless
otherwise provided, the following are certain defined terms used throughout this
prospectus:
◾
Employer Sponsored
Retirement and Benefit Plans include (i) employer sponsored pension or profit
sharing plans that qualify under section
401(a) of the
Internal Revenue Code of 1986, as amended (the Code), including 401(k), money
purchase pension, profit sharing and defined benefit plans; (ii) 403(b) and
non-qualified deferred compensation arrangements that operate similar to plans
described under (i) above, such as 457 plans and executive deferred compensation
arrangements; (iii) health savings accounts maintained pursuant to Section 223
of the Code; and (iv) voluntary employees’ beneficiary arrangements
maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer Sponsored
IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified
Employee Pension (SAR-SEP), and Savings Incentive Match Plan for Employees of
Small Employers (SIMPLE) IRAs.
◾
Retirement and
Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and
Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on the Internet at
www.invesco.com/us. To access your account, go to the tab for “Account &
Services,” then click on “Accounts Overview.” For additional information about
Invesco Funds, consult the Fund’s prospectus and SAI, which are available on
that same website or upon request free of charge. The website is not part of
this prospectus.
Choosing
a Share Class
Each Fund may offer
multiple classes of shares and not all Funds offer all share classes discussed
herein. Each class represents an interest in the same portfolio of investments.
Certain classes have higher expenses than other classes which may lower the
return on your investment when compared to a less expensive class. In deciding
which class of shares to purchase, you should consider the following attributes
of the various share classes, among other things: (i) the eligibility
requirements that apply to purchases of a particular class and any eligibility
requirements of your financial intermediary, (ii) the initial sales charges
and contingent deferred sales charges (CDSCs), if any, applicable to the class,
(iii) the 12b-1 fee, if any, paid by the class, and (iv) any services
you may receive from a financial intermediary. Please contact your financial
adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s
share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A
shares |
A-1 The
Invesco Funds
MCF—02/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4 |
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short
Term Municipal Fund do not have initial sales charges or CDSCs on redemptions in
most cases.
2
Class A2 shares of
Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund
Class A shares and Invesco Short Duration Inflation Protected Fund Class A2
shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class A
shares have a 12b-1 fee of 0.10%.
3
The 12b-1 fee for
Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses
of the Fund—Annual Fund Operating Expenses” section of this prospectus reflects
the actual 12b-1 fees paid by a Fund.
4
Your financial
intermediary may have additional eligibility criteria for Class R shares. Please
see the “Financial Intermediary- Specific Arrangements” section of this
prospectus for further information.
In addition to the
share classes shown in the chart above, the following Funds offer the following
additional share classes further described in this prospectus:
◾
Investor Class
shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco
Energy Fund, Invesco EQV European Equity Fund, Invesco Health Care Fund, Invesco
High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund,
Invesco Income Advantage U.S. Fund, Invesco Government Money Market Fund,
Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap
Growth Fund, Invesco Technology Fund, Invesco Premier Portfolio and Invesco
Premier U.S. Government Money Portfolio.
◾
Class A2 shares:
Invesco Short Duration Inflation Protected Fund and Invesco Limited Term
Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class P shares:
Invesco Summit Fund;
◾
Class S shares:
Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor
Fund, Invesco Select Risk: Growth Investor Fund, Invesco Select Risk: Moderate
Investor Fund and Invesco Summit Fund; and
◾
Invesco Cash
Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government
Money Portfolio.
Share
Class Eligibility
The availability of
certain share classes will depend on how you purchased your shares.
Intermediaries may have different policies regarding the availability of certain
share classes than those described below. You should consult your financial
adviser to consider your options, including your eligibility to qualify for the
share classes described below. The Fund is not responsible for eligibility
requirements imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Financial Intermediary-Specific Arrangements” for
more information on certain intermediary-specific eligibility requirements.
Please
consult with your financial intermediary if you have any questions regarding
their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A, C and
Invesco Cash Reserve Shares are generally available to all retail investors,
including individuals, trusts, corporations, business and charitable
organizations and Retirement and Benefit Plans. Investors may only open an
account to purchase Class C shares if they have appointed a financial
intermediary that allows for new accounts in Class C shares to be opened. This
restriction does not apply to Employer Sponsored Retirement and Benefit Plans.
The share classes offer different fee structures that are intended to compensate
financial intermediaries for services provided in connection with the sale of
shares and continued maintenance of the customer relationship. You should
consider the services provided by your financial adviser and any other financial
intermediaries who will be involved in the servicing of your account when
choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and
Invesco Limited Term Municipal Income Fund, are closed to new investors. All
references in this “Shareholder Account Information” section of this prospectus
to Class A shares shall include Class A2 shares, unless otherwise
noted.
Class AX
and CX Shares
Class AX and
CX shares are closed to new investors. Only investors who have continuously
maintained an account in Class AX or CX of a specific Fund may make
additional purchases into Class AX and CX, respectively, of such specific
Fund. All references in this “Shareholder Account Information” section of this
prospectus to Class A, C or R shares of the Invesco Funds shall include
Class AX (excluding Invesco Government Money Market Fund), or CX shares,
respectively, of the Invesco Funds, unless otherwise noted. All references in
this “Shareholder Account Information” section of this prospectus to Invesco
Cash Reserve Shares of Invesco Government Money Market Fund shall include
Class AX shares of Invesco Government Money Market Fund, unless otherwise
noted.
Class P
Shares
In addition to the
other share classes discussed herein, the Invesco Summit Fund offers
Class P shares, which were historically sold only through the AIM Summit
Investors Plans I and II (each a Plan and, collectively, the Summit Plans).
Class P shares are sold with no initial sales charge and have a 12b-1 fee
of 0.10%. However, Class P shares are not sold to members of the general
public. Only shareholders who had accounts in the Summit Plans at the close of
business on December 8, 2006 may purchase Class P shares and only
until the total of their combined investments in the Summit Plans and in
Class P shares directly equals the face amount of their former Plan under
the 30 year extended investment option. The face amount of a Plan is the
combined total of all scheduled monthly investments under the Plan. For a Plan
with a scheduled monthly investment of $100.00, the face amount would have been
$36,000.00 under the 30 year extended investment option.
Class R
Shares
Class R shares
are intended for Retirement and Benefit Plans. Certain financial intermediaries
have additional eligibility criteria regarding Class R shares. If you received
Class R shares as a result of a merger or reorganization of a predecessor fund
into any of the Funds, you will be permitted to make additional Class R shares
purchases.
Class
R5 and R6 Shares
Class R5 and R6
shares of the Funds (except for the Invesco Master Loan Fund) are available for
use by Employer Sponsored Retirement and Benefit Plans, held either at the plan
level or through omnibus accounts, that generally process no more than one net
redemption and one net purchase transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds,
entities acting for the account of a public entity (e.g., Taft-Hartley
A-2 The
Invesco Funds
funds, states,
cities or government agencies), funds of funds or other pooled investment
vehicles, 529 college savings plans, financial intermediaries and corporations
investing for their own accounts, endowments and foundations. For information
regarding investment minimums for Class R5 and R6 shares, please see “Minimum
Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that has agreed
with Invesco Distributors, Inc. to make such shares available for use in retail
omnibus accounts that generally process no more than one net redemption and one
net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds in the
Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6
Shares to their customers.
Class S
Shares
Class S shares
are limited to investors who purchase shares with the proceeds received from a
systematic contractual investment plan redemption within the 12 months
prior to purchasing Class S shares, and who purchase through an approved
financial intermediary that has an agreement with the distributor to sell
Class S shares. Class S shares are not otherwise sold to members of
the general public. An investor purchasing Class S shares will not pay an
initial sales charge. The investor will no longer be eligible to purchase
additional Class S shares at that point where the value of the
contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what
would have been the investor’s systematic contractual investment plan under the
30-year investment option. The face amount of a systematic contractual
investment plan is the combined total of all scheduled monthly investments under
that plan. For a plan with a scheduled monthly investment of $100.00, the face
amount would have been $36,000.00 under the 30-year extended investment
option.
Class Y
Shares
Class Y shares are
available to (i) investors who purchase through an account that is charged an
asset-based fee or commission by a financial intermediary, including through
brokerage platforms, where a broker is acting as the investor’s agent, that may
require the payment by the investor of a commission and/or other form of
compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and
403(b) custodial accounts held directly at Invesco), (iii) banks or bank trust
departments acting on their own behalf or as trustee or manager for trust
accounts, or (iv) any current, former or retired trustee, director, officer or
employee (or immediate family members of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of
its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class Y shares by
your financial adviser, if you received Class Y shares as a result of a merger
or reorganization of a predecessor fund into any of the Funds, you will be
permitted to make additional Class Y share purchases. In addition, you will be
permitted to make additional Class Y shares purchases if you owned Class Y
shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24,
2019.
Investor
Class Shares
Investor Class
shares are sold with no initial sales charge and have a maximum 12b-1 fee of
0.25%. Only the following persons may purchase Investor Class
shares:
◾
Investors who
established accounts prior to April 1, 2002, in Investor Class shares with
Invesco Distributors, Inc. (Invesco Distributors) who have continuously
maintained an account in Investor Class shares (this includes anyone listed in
the registration of an account, such as a joint owner, trustee or custodian, and
immediate family members of such persons) without a designated intermediary.
These investors are referred to as “Investor Class grandfathered
investors.”
◾
Customers of a
financial intermediary that has had an agreement with the Funds’ distributor or
any Funds that offered Investor Class shares prior to April 1, 2002, that
has continuously maintained such agreement. These intermediaries are referred to
as “Investor Class grandfathered intermediaries.”
◾
Any current, former
or retired trustee, director, officer or employee (or immediate family member of
a current, former or retired trustee, director, officer or employee) of any
Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco Premier
Portfolio, please see “Shareholder Account Information – Purchasing Shares and
Shareholder Eligibility – Invesco Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except as noted
below, each Fund has adopted a service and/or distribution plan pursuant to SEC
Rule 12b-1. A 12b-1 plan allows a Fund to pay distribution and service fees to
Invesco Distributors to compensate or reimburse, as applicable, Invesco
Distributors for its efforts in connection with the sale and distribution of the
Fund’s shares, all or a substantial portion of which are paid to the dealer of
record. Because the Funds pay these fees out of their assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cause you to pay more than the maximum permitted initial sales charges described
in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco Limited
Term Municipal Income Fund, Class A2 shares.
◾
Invesco Government
Money Market Fund, Investor Class shares.
◾
Invesco Premier
Portfolio, Investor Class shares.
◾
Invesco Premier
U.S. Government Money Portfolio, Investor Class shares.
◾
All Funds,
Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay distribution
and/or service fees up to the following annual rates with respect to each Fund’s
average daily net assets with respect to such class (subject to the exceptions
noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco Cash
Reserve Shares: 0.15%
◾
Investor Class
shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular Fund’s
12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The Funds are
grouped into six categories for determining initial sales charges. The “Other
Information” section of each Fund’s prospectus will tell you the sales charge
category in which the Fund is classified. Additionally, Class A shares of
Invesco Conservative Income Fund and Invesco Short Term Municipal Fund do not
have initial sales charges. As used below, the term “offering price” with
respect to all categories of Class A shares includes the initial sales
charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or V Funds or
$250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase)
the initial sales charge set forth below will be waived; though your shares will
be subject to a 1% CDSC if you don’t hold such shares for at least 18
months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.75 |
2.83 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
4.25% |
4.44% |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.50 |
2.56 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
1.00% |
1.01% |
|
| |||
|
$100,000 but
less than |
$250,000 |
0.75 |
0.76 |
|
| |||
|
$250,000 but
less than |
$1,000,000 |
0.50 |
0.50 |
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
2.50% |
2.56% |
|
| |||
|
$100,000 but
less than |
$250,000 |
1.75 |
1.78 |
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
3.25% |
3.36% |
|
| |||
|
$100,000 but
less than |
$250,000 |
2.75 |
2.83 |
|
| |||
|
$250,000 but
less than |
$500,000 |
1.75 |
1.78 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
1.50 |
1.52 |
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The availability of
certain sales charge waivers and discounts will depend on how you purchase your
shares. Intermediaries may have different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred (back-end)
sales load (“CDSC”) waivers, exchanges or conversions between classes or
exchanges between Funds; account investment minimums; and minimum account
balances, which are discussed below. In all instances, it is the purchaser’s
responsibility to notify the Fund or the purchaser’s financial intermediary at
the time of purchase of any relationship or other facts qualifying the purchaser
for sales charge waivers, discounts or other special arrangements. For waivers
and discounts not available through a particular intermediary, shareholders
should consult their financial advisor to consider their options.
The
following types of investors may purchase Class A shares without
paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors who
purchase shares through a fee-based advisory account with an approved financial
intermediary. In a fee based advisory program, a financial intermediary
typically charges each investor a fee based on the value of the investor’s
account in exchange for servicing that account.
◾
Employer Sponsored
Retirement and Benefit Plans maintained on retirement platforms or by the Funds’
transfer agent or its affiliates (but not including plans utilizing the Invesco
403(b)(7) Custodial Account program, or the individual custodial accounts
thereunder):
◾
with assets of at
least $1 million; or
◾
with at least 100
employees eligible to participate in the plan; or
◾
that execute plan
level or multiple-plan level transactions through a single omnibus account per
Fund.
◾
Any investor who
purchases his or her shares with the proceeds of an in kind rollover, transfer
or distribution from a Retirement and Benefit Plan where the account being
funded by such rollover is to be maintained by the same financial intermediary,
trustee, custodian or administrator that maintained the plan from which the
rollover distribution funding such rollover originated, or an affiliate
thereof.
◾
Investors who own
Investor Class shares of a Fund, who purchase Class A shares of a different
Fund through the same account in which the Investor Class Shares were first
purchased.
◾
Funds of funds or
other pooled investment vehicles.
◾
Insurance company
separate accounts.
◾
Any current or
retired trustee, director, officer or employee of any Invesco Fund or of Invesco
Ltd. or any of its subsidiaries.
◾
Any registered
representative or employee of any financial intermediary who has an agreement
with Invesco Distributors to sell shares of the Invesco Funds (this includes any
members of his or her immediate family).
◾
Any investor
purchasing shares through a financial intermediary that has a written
arrangement with the Funds’ distributor in which the Funds’ distributor has
agreed to participate in a no transaction fee program in which the financial
intermediary will make Class A shares available without the imposition of a
sales charge.
◾
Former shareholders
of Atlas Strategic Income Fund who purchase shares of a Fund into which
shareholders of Invesco Global Strategic Income Fund may exchange if permitted
by the intermediary’s policies.
◾
Former shareholders
of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of
a Fund into which shareholders of Invesco Main Street Fund may exchange if
permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an
initial sales
charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging shares
of one Fund that were previously assessed a sales charge for shares of another
Fund;
◾
purchasing shares
in connection with the repayment of an Employer Sponsored Retirement and Benefit
Plan loan administered by the Funds’ transfer agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C,
Class R, Class R5, Class R6 or Class Y shares where the redemption and
purchase are effectuated on the same business day due to the distribution of a
Retirement and Benefit Plan maintained by the Funds’ transfer agent or one of
its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A shares
without paying an initial charge as a result of the investor’s current or former
relationship with the Invesco Funds. For additional information about such
eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding exchanges
and conversions, account investment minimums, minimum account balances, and
share class eligibility requirements that follow are only available to clients
of those financial intermediaries specifically named below and to Invesco funds
that offer the share class(es) to which the arrangements relate. Please contact
your financial intermediary for questions regarding your eligibility and for
more information with respect to your financial intermediary’s sales charge
waivers, discounts, investment minimums, minimum account balances, and share
class eligibility requirements and other special arrangements. Financial
intermediary-specific sales charge waivers, discounts, investment minimums,
minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements and
other special arrangements are implemented and administered by each financial
intermediary. It is the responsibility of your financial intermediary (and not
the Funds) to ensure that you obtain proper financial intermediary-specific
waivers, discounts, investment minimums, minimum account balances and other
special arrangements and that you are placed in the proper share class for which
you are eligible through your financial intermediary. In all instances, it is
the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts
qualifying the purchaser for sales charge waivers or discounts or other
financial intermediary-specific arrangements as disclosed herein. Please contact
your financial intermediary for more information regarding the sales charge
waivers, discounts, investment minimums, minimum account balances, share class
eligibility requirements and other special arrangements available to you and to
ensure that you understand the steps you must take to qualify for such
arrangements. The terms and availability of these waivers and special
arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch
platform or account
will be eligible only for the following load waivers (front-end sales charge
waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-end Sales
Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan;
◾
Shares purchased by
a 529 Plan (does not include 529 Plan unit or 529-specific share classes or
equivalents);
◾
Shares purchased
through a Merrill Lynch affiliated investment advisory program;
◾
Shares exchanged
due to the holdings moving from a Merrill Lynch affiliated investment advisory
program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill
Lynch’s policies relating to sales load discounts and waivers;
◾
Shares purchased by
third party investment advisors on behalf of their advisory clients through
Merrill Lynch’s platform;
◾
Shares of funds
purchased through the Merrill Edge Self-Directed platform (if
applicable);
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family);
◾
Shares exchanged
from Class C (i.e. level-load) shares
of the same fund pursuant to Merrill Lynch’s policies relating to sales load
discounts and waivers;
◾
Employees and
registered representatives of Merrill Lynch or its affiliates and their family
members;
◾
Directors or
Trustees of the Fund, and employees of the Fund’s investment adviser or any of
its affiliates, as described in this prospectus; and
◾
Eligible shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption,
(2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as Rights of Reinstatement). Automated transactions (i.e. systematic
purchases and withdrawals) and purchases made after shares are automatically
sold to pay Merrill Lynch’s account maintenance fees are not eligible for
reinstatement.
◾
CDSC Waivers on A
and C Shares available at Merrill Lynch
◾
Death or disability
of the shareholder;
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund’s
prospectus;
◾
Return of excess
contributions from an IRA Account;
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts pursuant to
the Internal Revenue Code;
◾
Shares sold to pay
Merrill Lynch fees but only if the transaction is initiated by Merrill
Lynch;
◾
Shares acquired
through a right of reinstatement;
◾
Shares held in
retirement brokerage accounts, that are converted to a lower cost share class
due to transfer to a fee based account or platform (applicable to A and C shares
only); and
◾
Shares received
through an exchange due to the holdings moving from a Merrill Lynch affiliated
investment advisory program to a Merrill Lynch brokerage (non-advisory) account
pursuant to Merrill Lynch’s policies relating to sales load discounts and
waivers.
◾
Front-end load
Discounts Available at Merrill Lynch: Breakpoints, Rights of
Accumulation & Letters of Intent
◾
Breakpoints as
described in this prospectus;
◾
Rights of
Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the Fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets; and
◾
Letters of Intent
(LOI) which allow for breakpoint discounts based on anticipated purchases within
a fund family, through Merrill Lynch, over a 13-month period of time (if
applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise
Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage
account are eligible for the following front-end sales charge waivers, which may
differ from those disclosed elsewhere in this Fund’s prospectus or
SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same Fund (but not any other fund within the same
fund family).
◾
Shares exchanged
from Class C shares of the same fund in the month of or following the 7-year
anniversary of the purchase date. To the extent that this prospectus elsewhere
provides for a waiver with respect to exchanges of Class C shares or conversion
of Class C shares following a shorter holding period, that waiver will
apply.
◾
Employees and
registered representatives of Ameriprise Financial or its affiliates and their
immediate family members.
◾
Shares purchased by
or through qualified accounts (including IRAs, Coverdell Education Savings
Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that
are held by a covered family member, defined as an Ameriprise financial advisor
and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father,
grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson,
granddaughter, great grandson, great granddaughter) or any spouse of a covered
family member who is a lineal descendant.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or
SAI.
◾
Front-end Sales
Charge Waivers on Class A Shares available at Morgan Stanley Wealth
Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans;
◾
Morgan Stanley
employee and employee-related accounts according to Morgan Stanley’s account
linking rules;
◾
Shares purchased
through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund;
◾
Shares purchased
through a Morgan Stanley self-directed brokerage account;
◾
Class C (i.e.,
level-load) shares that are no longer subject to a contingent deferred sales
charge and are converted to Class A shares of the same fund pursuant to Morgan
Stanley Wealth Management’s share class conversion program; and
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (i) the
repurchase occurs within 90 days following the redemption, (ii) the redemption
and purchase occur in the same account, and (iii) redeemed shares were subject
to a front-end or deferred sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James
affiliates and each entity’s affiliates (Raymond James) platform or account, or
through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or
custody services, will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in this Fund’s prospectus or SAI.
◾
Front-end sales
load waivers on Class A shares available at Raymond James
◾
Shares purchased in
an investment advisory program.
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
distributions and dividend distributions.
◾
Employees and
registered representatives of Raymond James or its affiliates and their family
members as designated by Raymond James.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is in line with the policies and
procedures of Raymond James.
◾
CDSC Waivers on
Classes A and C shares available at Raymond James
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS regulations as
described in the fund’s prospectus.
◾
Shares sold to pay
Raymond James fees but only if the transaction is initiated by Raymond
James.
◾
Shares acquired
through a right of reinstatement.
◾
Front-end load
discounts available at Raymond James: breakpoints, rights of accumulation,
and/or letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Raymond James may be included in the calculation of letters of intent only if
the shareholder notifies his or her financial advisor about such
assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders
through a D.A.
Davidson platform or
account, or through an introducing broker-dealer or independent registered
investment advisor for which D.A. Davidson provides trade execution, clearance,
and/or custody services, will be eligible for the following sales charge waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in this Fund’s prospectus or SAI.
◾
Front-End Sales
Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
and dividend distributions.
◾
Employees and
registered representatives of D.A. Davidson or its affiliates and their family
members as designated by D.A. Davidson.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s
policies and procedures.
◾
CDSC Waivers on
Classes A and C shares available at D.A. Davidson
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA or other qualifying retirement
accounts as described in the fund’s prospectus beginning in the calendar year
the shareholder turns age 72.
◾
Shares acquired
through a right of reinstatement.
◾
Front-end sales
charge discounts available at D.A. Davidson: breakpoints, rights of accumulation
and/or letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at D.A. Davidson. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at D.A. Davidson may be included in the calculation of letters of intent only if
the shareholder notifies his or her financial advisor about such
assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney
brokerage account
will be eligible for the following load waivers (front-end sales charge waivers
and contingent deferred sales charge (“CDSC”), or back-end sales charge,
waivers) and discounts, which may differ from those disclosed elsewhere in this
fund’s Prospectus or SAI.
◾
Front-end sales
charge waivers on Class A shares available at Janney
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of Janney or its affiliates and their
family members as designated by Janney.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within ninety (90) days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., right of
reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares acquired
through a right of reinstatement.
◾
Class C shares that
are no longer subject to a contingent deferred sales charge and are converted to
Class A shares of the same fund pursuant to Janney’s policies and
procedures.
◾
CDSC waivers on
Class A and C shares available at Janney
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
Prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and other retirement accounts due to
the shareholder reaching the qualified age based on applicable IRS regulations
as described in the fund’s Prospectus.
◾
Shares sold to pay
Janney fees but only if the transaction is initiated by Janney.
◾
Shares acquired
through a right of reinstatement.
◾
Shares exchanged
into the same share class of a different fund.
◾
Front-end sales
charge discounts available at Janney: breakpoints, rights of accumulation,
and/or letters of intent
◾
Breakpoints as
described in the fund’s Prospectus.
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Janney Montgomery Scott may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO platform or
account are eligible only for the following load waivers (front-end sales charge
waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund's
prospectus or SAI.
◾
Front-end Sales
Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to
fund those plans,
provided that the shares are not held in a commission-based brokerage account
and shares are held for the benefit of the plan
◾
Shares purchased by
or through a 529 Plan
◾
Shares purchased
through an OPCO affiliated investment advisory program
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family)
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund's Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is in line with the policies and
procedures of OPCO
◾
Employees and
registered representatives of OPCO or its affiliates and their family
members
◾
Directors or
Trustees of the Fund, and employees of the Fund's investment adviser or any of
its affiliates, as described in this prospectus
◾
CDSC Waivers on A
and C Shares available at OPCO
◾
Death or disability
of the shareholder
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund's
prospectus
◾
Return of excess
contributions from an IRA Account
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS regulations as
described in the prospectus
◾
Shares sold to pay
OPCO fees but only if the transaction is initiated by OPCO Shares acquired
through a right of reinstatement
◾
Front-end load
Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters
of Intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser's household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End Sales
Charge Waivers on Class A-shares Available at Baird
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund.
◾
Shares purchased by
employees and registered representatives of Baird or its affiliate and their
family members as designated by Baird.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as rights of
reinstatement).
◾
A shareholder in
the Fund’s Class C Shares will have their shares converted at net asset value to
Class A shares of the fund if the shares are no longer subject to CDSC and the
conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money
A-7 The
Invesco Funds
purchase pension
plans and defined benefit plans. For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or
SAR-SEPs.
◾
CDSC Waivers on
Classes A and C shares Available at Baird
◾
Shares sold due to
death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund’s
Prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching age 72 as described in the Fund’s prospectus.
◾
Shares sold to pay
Baird fees but only if the transaction is initiated by Baird.
◾
Shares acquired
through a right of reinstatement.
◾
Front-End Sales
Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or
letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Baird. Eligible fund family
assets not held at Baird may be included in the rights of accumulation
calculation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters of Intent
(LOI) allow for breakpoint discounts based on anticipated purchases of within a
fund family through Baird, over a 13-month period of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions and
positions held in fund shares through an Edward Jones system. Shareholders
purchasing Fund shares through the Edward
Jones
commission and
fee-based platforms will be eligible for the following load waivers (front- end
sales charge waivers and contingent deferred, or back-end, sales charge waivers)
and discounts, which may differ from those disclosed elsewhere in this Fund's
prospectus or statement of additional information (“SAI”). In all instances, it
is the shareholder's responsibility to inform Edward Jones at the time of
purchase of any relationship, holdings of Invesco Funds (including holdings of
529 Plans where Invesco serves as primary distributor), or other facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
◾
Front-end sales
load waivers on Class A shares available at Edward Jones
◾
Associates of
Edward Jones and its affiliates and their family members who are in the same
pricing group (as determined by Edward Jones under its policies and procedures)
as the associate. This waiver will continue for the remainder of the associate's
life if the associate retires from Edward Jones in good-standing and remains in
good standing pursuant to Edward Jones' policies and procedures.
◾
Shares purchased in
an Edward Jones fee-based program.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend
reinvestment.
◾
Shares purchased
from the proceeds of redeemed shares of the same fund family so long as the
following conditions are met: 1) the proceeds are from the sale of shares within
60 days of the purchase, and 2) the sale and purchase are made in the same share
class and the same account or the purchase is made in an individual retirement
account with proceeds from liquidations in a non-retirement account.
◾
Shares exchanged
into Class A shares from another share class so long as the exchange is into the
same fund and was initiated at the discretion of Edward Jones. Edward Jones is
responsible for any remaining CDSC due to the fund company, if applicable. Any
future purchases are subject to the applicable sales charge as disclosed in the
prospectus.
◾
Exchanges from
Class C shares to Class A shares of the same fund, generally, in the 84th month
following the anniversary of the purchase date or earlier at the discretion of
Edward Jones.
◾
CDSC Waivers on
Classes A and C shares available at Edward Jones
◾
Death or disability
of the shareholder.