Prospectus
June
28, 2024
Class: A
(OFIAX), C (OFICX), R (OFINX), Y (OFIYX), R5 (IOTEX), R6 (OFIIX)
Invesco
Intermediate Bond Factor Fund
Class R5
shares will be closed to new investors after the close of business on September
30, 2024.
As with all
other mutual fund securities, the U.S. Securities and Exchange Commission (SEC)
has not approved or disapproved these securities or passed upon the adequacy of
this prospectus. Any representation to the contrary is a criminal
offense.
An investment
in the Fund:
■
is not FDIC
insured;
■
may lose
value; and
■
is not
guaranteed by a bank.
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Back
Cover |
Invesco
Intermediate Bond Factor Fund
The Fund’s
investment objective is to seek total return.
This table
describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a
shareholder may be required to pay directly to its financial intermediary when
buying or selling Class Y or Class R6 shares.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 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 |
|
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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|
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the
value
of your investment) | ||||||
|
Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Management
Fees |
% |
% |
% |
% |
% |
% |
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|
Distribution
and/or Service (12b-1) Fees |
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Other
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 |
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2 |
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The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This
Example does not include commissions and/or other forms of compensation that
investors may pay on transactions in Class Y and Class R6 shares. The Example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain equal to the Total Annual Fund Operating Expenses
After Fee Waiver and/or Expense Reimbursement in the first year and the Total
Annual Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
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| ||||
|
Class
C |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
Y |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R5 |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R6 |
$ |
$ |
$ |
$ |
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
C |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
Y |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R5 |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R6 |
$ |
$ |
$ |
$ |
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Under normal
market conditions, the Fund will invest at least 80% of its net assets (plus any
borrowings for investment purposes) in debt securities, and in derivatives and
other instruments that have economic characteristics similar to such
securities.
The
kinds of debt securities in which the Fund can invest include investment
grade U.S. corporate and government debt obligations (including securities
issued or guaranteed by the U.S. Government or its agencies or
federally-chartered entities referred to as “instrumentalities” ), as well as
mortgage-backed, commercial mortgage-backed and asset-backed securities.
The Fund’s debt investments may include certain restricted securities, including
securities that are only eligible for resale pursuant to Rule 144A under the
Securities Act of 1933, as amended.
Under
normal market conditions, the Fund will only purchase investment grade debt
securities. “Investment-grade” debt securities are securities rated at or
above “BBB-” or “Baa3” by at least one of S&P Global Ratings (S&P) or
Moody’s Investors Service (Moody’s), respectively, or that have comparable
ratings from other nationally recognized statistical rating organizations
(NRSROs). If two or more nationally recognized statistical rating organizations
have assigned different ratings to a security, the investment adviser uses the
highest rating assigned. The Fund may also invest in unrated securities, in
which case Invesco Advisers, Inc. (Invesco or the Adviser) may internally assign
ratings to certain of those securities, after assessing their credit quality, in
investment grade categories similar to those of NRSROs. There can be no
assurance, nor is it intended, that the Adviser’s credit analysis is consistent
or comparable with the credit analysis process used by an NRSRO.
Although
the Fund will only purchase investment grade debt securities (or unrated
securities that the Adviser has assessed as investment grade), it may continue
to hold a security whose credit has been downgraded or, in the case of an
unrated security, after the Adviser has changed its
1 Invesco
Intermediate Bond Factor Fund
assessment of
the security’s quality. As a result, credit rating downgrades or other
market fluctuations may cause the Fund’s holdings of below-investment grade,
fixed income securities (also known as “junk” bonds) to become significant for
an extended period of time.
The
Fund seeks to maintain a dollar-weighted average effective portfolio
maturity of
four to ten years; however, it may purchase securities that have short,
intermediate or long maturities.
The
Fund may purchase securities of issuers of any market capitalization.
The
Fund is managed by Invesco’s Fixed Income Factor Team (FIF). In
selecting
securities for the portfolio, the Fund’s portfolio managers and FIF analysts
utilize a factor-based strategy that involves systematically targeting
securities exhibiting quantifiable issuer characteristics (or “factors”) that
FIF believes will have higher returns than other fixed income securities with
comparable characteristics over market cycles. The portfolio managers will
consider selling securities that no longer exhibit these factors. In
practice, this means the Fund may have higher allocations to: value bonds (bonds
that have high spreads relative to other securities of similar credit quality
and/or sector); low volatility bonds (bonds that have lower levels of price
volatility); and high carry bonds (bonds with higher absolute yield or
spread). The portfolio managers expect to include additional factors or
modify the factors used to build the Fund’s portfolio as they deem appropriate.
The portfolio managers will also seek to minimize some of the residual risks
associated with the higher allocations to the types of bonds mentioned above
(such as duration and sector concentration), including through the use of
derivatives, as described below.
The
Fund may invest in foreign debt securities, including securities issued by
foreign governments or companies in developing and emerging markets, i.e., those
that are generally in the early stages of their industrial cycles, but may only
invest up to 25% of its net assets in securities denominated in non-U.S. dollar
currencies of which no more than 10% may remain unhedged. The portfolio managers
may use derivatives to seek to hedge any foreign currency exposure.
The
Fund may invest in U.S. agency mortgage pass-through securities and may seek
to obtain such exposure primarily through the use of standardized agreements for
forward or future delivery in which the actual mortgage pools to be delivered
are not specified until shortly prior to settlement (to be announced (TBA)
transactions).
The
Fund may also use certain types of derivative investments for investment
purposes or for hedging, including: options, futures, forward contracts, swaps,
“structured” notes and other types of derivatives.
The
Fund can use swap contracts, including interest rate swaps, to hedge or
adjust its exposure to interest rates. The Fund can also use swap contracts,
including credit default swaps, to create long or short exposure to corporate or
sovereign debt securities. The Fund can further use swap contracts, including
credit default index swaps, to hedge credit risk or take a position on a basket
of credit entities; total return swaps, to gain exposure to a reference
asset; and volatility swaps to adjust the volatility profile of the
Fund.
The
Fund can use options, including currency options, to seek alpha (return on
investments in excess of the benchmark index) or to mitigate risk and to hedge
against adverse movements in the foreign currencies in which portfolio
securities are denominated. The Fund can also use credit default swap options to
gain the right to enter into a credit default swap at a specified future date.
The Fund can further use swaptions (options on swaps) to manage interest rate
risk; and options on bond or rate futures to manage interest rate
exposure.
The
Fund can use futures contracts, including interest rate futures and Treasury
futures, to increase or reduce its exposure to interest rate changes. The Fund
can also use currency futures to increase or decrease its exposure to foreign
currencies. The Fund can engage in foreign currency transactions either on a
spot basis (i.e., for prompt delivery and settlement at the rate prevailing in
the currency exchange market at the time) or
through
forward foreign currency contracts to gain or mitigate the risk of foreign
currency exposure.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund buys or sells a security with payment
and delivery taking place in the future. The payment obligation and the interest
rate are fixed at the time the Fund enters into the commitment. No income
accrues on such securities until the date the Fund actually takes delivery of
the securities.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund may engage in active and frequent trading of
portfolio securities.
Principal
Risks of Investing in the Fund
2 Invesco
Intermediate Bond Factor Fund
3 Invesco
Intermediate Bond Factor Fund
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense
reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and capital
gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us .
Annual Total Returns
The bar chart
does not reflect sales loads. If it did, the annual total returns shown would be
lower.
|
Class
A |
Period
Ended |
Returns |
|
|
|
- |
|
|
|
|
|
|
|
- |
4 Invesco
Intermediate Bond Factor Fund
Average Annual Total Returns (for the periods ended December 31, 2023)
|
|
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 |
|
|
|
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|
| ||||
|
Class
C |
|
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|
| ||||
|
Class
R |
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|
Class
Y |
|
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| ||||
|
Class
R5 |
|
|
1 |
1 |
|
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|
Class
R6 |
|
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|
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|
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|
Bloomberg
U.S. Aggregate Bond Index deduction
for fees, expenses or taxes) |
|
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1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
Noelle
Corum, CFA |
Portfolio
Manager |
2020 |
|
| ||
Jacob
Habibi, CFA |
Portfolio
Manager |
2023 |
|
| ||
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 |
|
| ||
The
Fund will discontinue sales of its Class R5 shares to new investors after the
close of business on September 30, 2024. 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 seek total return. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder
approval.
Under
normal market conditions, the Fund will invest at least 80% of its net assets
(plus any borrowings for investment purposes) in debt securities, and in
derivatives and other instruments that have economic characteristics similar to
such securities.
The
kinds of debt securities in which the Fund can invest include investment
grade U.S. corporate and government debt obligations (including securities
issued or guaranteed by the U.S. Government or its agencies or
federally-chartered entities referred to as “instrumentalities” ), as well as
mortgage-backed, commercial mortgage-backed and asset-backed securities. The
Fund’s debt investments may include certain restricted securities, including
securities that are only eligible for resale pursuant to Rule 144A under the
Securities Act of 1933, as amended.
The
Fund may invest in securities issued or guaranteed by the U.S. government or
its agencies and instrumentalities. Some of those securities are directly issued
by the U.S. Treasury and are backed by the full faith and credit of the U.S.
government. “Full faith and credit” means that the taxing power of the U.S.
government is pledged to the payment of interest and repayment of principal on a
security. Some of the securities that are issued directly by the U.S. Treasury
are: Treasury bills (having maturities of one year or less when issued),
Treasury notes (having maturities of from one to ten years when issued),
Treasury bonds (having maturities of more than ten years when issued) and
Treasury Inflation-Protection Securities (TIPS).
Some
securities issued by U.S. government agencies, such as Government
National Mortgage Association pass-through mortgage obligations (Ginnie Maes),
are also backed by the full faith and credit of the
5 Invesco
Intermediate Bond Factor Fund
U.S.
government. Others are supported only by the credit of the agency that issued
them (for example, obligations issued by the Federal Home Loan Banks, “Fannie
Mae” bonds issued by the Federal National Mortgage Association and “Freddie Mac”
obligations issued by the Federal Home Loan Mortgage Corporation).
The
Fund can buy interests in pools of residential or commercial mortgages in
the form of “pass-through” mortgage securities. They may be issued or guaranteed
by the U.S. government, or its agencies and instrumentalities, or by private
issuers, such as corporations, banks, savings and loans, mortgage bankers and
other non-governmental issuers. Mortgage-related securities may be issued in
different series, each having different interest rates and maturities.
Mortgage-related securities that are U.S. government securities have collateral
to secure payment of interest and principal. The collateral is either in the
form of mortgage pass-through certificates issued or guaranteed by a U.S. agency
or instrumentality or mortgage loans insured by a U.S. government
agency.
Mortgage-related
private issuer securities include multi-class debt or pass-through
certificates secured by mortgage loans, which may be issued by private issuers.
Private-issuer mortgage-backed securities may include loans on residential or
commercial properties. Mortgage-related securities, including collateralized
mortgage obligations (CMOs), issued by private issuers are not U.S. government
securities, making them subject to greater credit risks than U.S. government
securities. Asset-backed securities are fractional interests in pools of loans,
receivables or other assets. They are issued by trusts or other special purpose
vehicles and are collateralized by the loans, receivables or other assets that
make up the pool. The trust or other issuer passes the income from the
underlying asset pool to the investor. Neither the Fund nor the adviser selects
the loans, receivables or other assets that are included in the pools or the
collateral backing those pools.
Under
normal market conditions, the Fund will only purchase investment grade debt
securities. “Investment-grade” debt securities are securities rated at or above
“BBB-” or “Baa3” by at least one of S&P or Moody’s, respectively, or that
have comparable ratings from other NRSROs. If two or more nationally recognized
statistical rating organizations have assigned different ratings to a security,
the investment adviser uses the highest rating assigned. The Fund may also
invest in unrated securities, in which case the Adviser may internally assign
ratings to certain of those securities, after assessing their credit quality, in
investment grade categories similar to those of NRSROs. There can be no
assurance, nor is it intended, that the Adviser’s credit analysis is consistent
or comparable with the credit analysis process used by an NRSRO.
Although
the Fund will only purchase investment grade debt securities (or unrated
securities that the Adviser has assessed as investment grade), it may continue
to hold a security whose credit has been downgraded or, in the case of an
unrated security, after the Adviser has changed its assessment of the security’s
quality. As a result, credit rating downgrades or other market fluctuations may
cause the Fund’s holdings of below-investment grade, fixed income securities
(also known as “junk” bonds) to become significant for an extended period of
time.
The
Fund seeks to maintain a dollar-weighted average effective portfolio
maturity of
four to ten years; however, it may purchase securities that have short,
intermediate or long maturities.
The
Fund seeks to maintain a dollar-weighted average effective portfolio
maturity of
four to ten years; however, it may purchase securities with short-, medium- or
long-term maturities. The maturity of a security (the date when its principal
repayment is due) differs from its effective duration, which attempts to measure
the expected sensitivity of a security’s price to interest rate changes.
“Effective duration” attempts to measure the expected percentage change in the
value of a bond or portfolio resulting from a change in prevailing interest
rates. The change in the value of a bond or portfolio can be approximated by
multiplying its duration by a change in interest rates. For example, if a bond
has an effective duration of three years, a 1% increase in general interest
rates would be expected to cause
the bond’s
value to decline about 3% while a 1% decrease in general interest rates would be
expected to cause the bond’s value to increase 3%. Duration calculations rely on
a number of assumptions and variables based on the historic performance of
similar securities. Therefore, duration can be affected by unexpected economic
events or conditions relating to a particular security. In the case of
mortgage-related securities, duration calculations are based on historic rates
of prepayments of underlying mortgages. If the mortgages underlying the Fund’s
investments are prepaid more rapidly or more slowly than expected, the duration
calculation for that security may not be correct.
The
Fund may purchase securities of issuers of any market capitalization.
The
Fund is managed by Invesco’s Fixed Income Factor Team (FIF). In selecting
securities for the portfolio, the Fund’s portfolio managers and FIF analysts
utilize a factor-based strategy that involves systematically targeting
securities exhibiting quantifiable issuer characteristics (or “factors”) that
FIF believes will have higher returns than other fixed income securities with
comparable characteristics over market cycles. The portfolio managers will
consider selling securities that no longer exhibit these factors. In practice,
this means the Fund may have higher allocations to: value bonds (bonds that have
high spreads relative to other securities of similar credit quality and/or
sector); low volatility bonds (bonds that have lower levels of price
volatility); and high carry bonds (bonds with higher absolute yield or spread).
The portfolio managers expect to include additional factors or modify the
factors used to build the Fund’s portfolio as they deem appropriate. The
portfolio managers will also seek to minimize some of the residual risks
associated with the higher allocations to the types of bonds mentioned above
(such as duration and sector concentration), including through the use of
derivatives, as described below.
The
Fund may invest in foreign debt securities, including securities issued by
foreign governments or companies in developing and emerging markets, i.e., those
that are generally in the early stages of their industrial cycles, but may only
invest up to 25% of its net assets in securities denominated in non-U.S. dollar
currencies of which no more than 10% may remain unhedged. Foreign debt
securities include obligations of issuers that are organized under the laws of a
foreign country or that have a substantial portion of their operations or assets
in a foreign country or countries, or that derive a substantial portion of their
revenue or profits from businesses, investments or sales outside of the United
States. Foreign debt securities also include debt securities issued by foreign
governments, as well as “supra-national” entities, such as the World Bank. The
portfolio managers may use derivatives to seek to hedge any foreign currency
exposure.
The
Fund may invest in U.S. agency mortgage pass-through securities and may seek
to obtain such exposure primarily through the use of standardized agreements for
forward or future delivery in which the actual mortgage pools to be delivered
are not specified until shortly prior to settlement (to be announced (TBA)
transactions).
The
Fund may also use certain types of derivative investments for investment
purposes or for hedging, including: options, futures, forward contracts, swaps,
“structured” notes and other types of derivatives. A derivative is an instrument
whose value depends on (or is derived from) the value of an underlying security,
asset, interest rate, index or currency. Derivatives may allow the Fund to
increase or decrease its exposure to certain markets or risks. The Fund may use
derivatives to seek to increase its investment return or for hedging purposes.
The Fund is not required to use derivatives in seeking its investment objective
or for hedging and might not do so.
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 specified
securities, indexes, reference rates, commodities, currencies or other assets.
The notional amount of a swap is based on the nominal or face amount of a
reference asset that is used to calculate payments made on that swap; the
notional amount typically is not exchanged between
6 Invesco
Intermediate Bond Factor Fund
counterparties.
The parties to the swap use variations in the value of the underlying asset to
calculate payments between them through the life of the swap. The Fund can use
swap contracts, including interest rate swaps, to hedge or adjust its exposure
to interest rates. The Fund can also use swap contracts, including credit
default swaps, to create long or short exposure to corporate or sovereign debt
securities. The Fund can further use swap contracts, including credit default
index swaps, to hedge credit risk or take a position on a basket of credit
entities; total return swaps, to gain exposure to a reference asset; and
volatility swaps to adjust the volatility profile of the Fund.
An
option is a derivative financial instrument that reflects a contract
between two
parties for a future transaction on an asset at a reference price. The buyer of
the option gains the right, but not the obligation, to engage in that
transaction, while the seller incurs the corresponding obligation to fulfill the
transaction. The price of an option derives from the difference between the
reference price and the value of the underlying asset (commonly a stock, a bond,
a currency or a futures contract) plus a premium based on the time remaining
until the expiration of the option. Other types of options exist, and options
can in principle be created for any type of valuable asset. The Fund can use
options, including currency options, to seek alpha (return on investments in
excess of the benchmark index) or to mitigate risk and to hedge against adverse
movements in the foreign currencies in which portfolio securities are
denominated. The Fund can also use credit default swap options to gain the right
to enter into a credit default swap at a specified future date. The Fund can
further use swaptions (options on swaps) to manage interest rate risk; and
options on bond or rate futures to manage interest rate exposure.
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. The value of the futures contract tends to increaseand decrease in
tandem with the value of the underlying asset. Futures contracts are bilateral
agreements, with both the purchaser and the seller equally obligated to complete
the transaction. 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. The Fund can use futures contracts,
including interest rate futures and Treasury futures, to increase or reduce its
exposure to interest rate changes. The Fund can also use currency futures to
increase or decrease its exposure to foreign currencies. The Fund can engage in
foreign currency transactions either on a spot basis (i.e., for prompt delivery
and settlement at the rate prevailing in the currency exchange market at the
time) or through forward foreign currency contracts to gain or mitigate the risk
of foreign currency exposure.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund buys or sells a security with payment
and delivery taking place in the future. The payment obligation and the interest
rate are fixed at the time the Fund enters into the commitment. No income
accrues on such securities until the date the Fund actually takes delivery of
the securities.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund may engage in active and frequent trading of
portfolio securities.
In
anticipation of or in response to market, economic, political, or other
conditions,
the Fund’s portfolio managers may temporarily use a different investment
strategy for defensive purposes. If the Fund’s portfolio managers do so,
different factors could affect the Fund’s performance and the Fund may not
achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described in
this prospectus vary from time to time, and, at any time, the Fund may not be
invested in all of the types of securities and other investments described in
this prospectus. The Fund may also invest in securities and other investments
not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The principal
risks of investing in the Fund are:
Market
Risk. The market
values of the Fund’s investments, and therefore the value of the Fund’s shares,
will go up and down, sometimes rapidly or unpredictably. Market risk may affect
a single issuer, industry or section of the economy, or it may affect the market
as a whole. The value of the Fund’s investments may go up or down due to general
market conditions that are not specifically related to the particular issuer,
such as real or perceived adverse economic conditions, changes in the general
outlook for revenues or corporate earnings, changes in interest or currency
rates, regional or global instability, or adverse investor sentiment generally.
The value of the Fund’s investments may also go up or down due to factors that
affect an individual issuer or a particular industry or sector, such as changes
in production costs and competitive conditions within an industry. In addition,
natural or environmental disasters, widespread disease or other public health
issues, war, military conflict, acts of terrorism, economic crisis or other
events may have a significant impact on the value of the Fund’s investments, as
well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s
investment strategy. During a general downturn in the financial markets,
multiple asset classes may decline in value. When markets perform well, there
can be no assurance that specific investments held by the Fund will rise in
value.
■
Market
Disruption Risks Related to Armed Conflict. As a result
of increasingly interconnected global economies
and financial
markets, armed conflict between countries or in a geographic region, for example
the current conflicts
between
Russia
and Ukraine
in Europe
and Hamas and
Israel in the
Middle
East,
has
the potential
to adversely impact the Fund’s investments. Such conflicts, and other
corresponding events, have had, and could continue to have, severe negative
effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative
impacts may be particularly acute in certain sectors.
The
timing and
duration of such conflicts, resulting sanctions, related events and other
implications cannot be predicted. The foregoing may result in a negative impact
on Fund performance and the value of an investment in the Fund, even beyond any
direct investment exposure the Fund may have to issuers located in or with
significant exposure to an impacted country or geographic
regions.
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 credit analysis applied to the Fund’s debt securities 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.
Credit
Quality
Risk. Credit
ratings evaluate the expectation that scheduled interest and principal payments
will be made in a timely manner.
7 Invesco
Intermediate Bond Factor Fund
They do not
reflect any judgment of market risk. Ratings and market value may change from
time to time, positively or negatively, to reflect new developments regarding
the issuer. Rating organizations might not change their credit rating of an
issuer in a timely manner to reflect events that could affect the issuer’s
ability to make timely payments on its obligations. In selecting securities for
its portfolio and evaluating their income potential and credit risk, the Fund
does not rely solely on ratings by rating organizations but evaluates business,
economic and other factors affecting issuers as well. Many factors affect an
issuer’s ability to make timely payments, and the credit risk of a particular
security may change over time. The investment adviser also may use its own
research and analysis to assess those risks. If a bond is insured, it will
usually be rated by the rating organizations based on the financial strength of
the insurer. The rating categories are described in an Appendix to the
SAI.
Unrated
Securities Risk. The
investment adviser may internally assign ratings to securities that are not
rated by any nationally recognized statistical rating organization, after
assessing their credit quality and other factors, in categories similar to those
of nationally recognized statistical rating organizations. There can be no
assurance, nor is it intended, that the investment adviser’s credit analysis
process is consistent or comparable with the credit analysis process used by a
nationally recognized statistical rating organization. Unrated securities are
considered “investment-grade” or “below-investment-grade” if judged by the
investment adviser to be comparable to rated investment-grade or
below-investment-grade securities. The investment adviser’s rating does not
constitute a guarantee of the credit quality. In addition, some unrated
securities may not have an active trading market or may trade less actively than
rated securities, which means that the Fund might have difficulty selling them
promptly at an acceptable price.
In
evaluating the credit quality of a particular security, whether rated or
unrated, the
investment adviser will normally take into consideration a number of factors
such as, if applicable, the financial resources of the issuer, the underlying
source of funds for debt service on a security, the issuer’s sensitivity to
economic conditions and trends, any operating history of the facility financed
by the obligation, the degree of community support for the financed facility,
the capabilities of the issuer’s management, and regulatory factors affecting
the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not
require the
Fund to dispose of the security. However, the investment adviser will evaluate
such downgraded securities to determine whether to keep them in the Fund’s
portfolio.
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,
perhaps
suddenly and to a significant degree, and to 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 and other governmental actions and political
events within the U.S. and abroad, 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 also, among other things, affect investor and
consumer expectations and confidence in the financial markets, including in the
U.S. government’s credit rating and ability to service its debt. Such changes
and events may adversely impact the Fund, including its operations, universe of
potential investment options, and return potential, and 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.
Factor-Based
Investing Risk. Although the
Adviser uses a proprietary factor-based investment strategy designed to target
securities exhibiting certain factor characteristics, there is no guarantee the
factor-based investment strategy will produce the desired outcomes. To the
extent the factor-based investment strategy or the information and data included
therein are incorrect or incomplete, the decisions made by the Adviser in
reliance thereon will expose the Fund to potential risks and could lead to the
Fund incurring losses on its investments. In addition, there may be periods when
a particular factor is out of favor and therefore, during such periods, the Fund
may incur losses.
■
High
Carry Factor. Securities
exhibiting a high carry factor are subject to the risk that changes in interest
rates, exchange rates or their term will affect their value.
■
Low
Volatility Factor. Low
volatility securities are seen as having a lower risk profile than the overall
markets. However, a portfolio comprised of low volatility securities may not
produce investment exposure that has lower variability to changes in such
securities’ price levels. Low volatility securities may also underperform the
broader market during periods of rapidly rising security prices.
■
Value
Factor. Value
securities are subject to the risk that valuations never improve or that the
returns on value securities are less than returns on other styles of investing
or the overall stock market.
Restricted
Securities Risk. Limitations
on the resale of restricted securities may have an adverse effect on their
marketability, and may prevent the Fund from disposing of them promptly at
reasonable prices. There can be no assurance that a trading market will exist at
any time for any particular restricted security. Transaction costs may be higher
for restricted securities. Also, restricted securities may be difficult to value
because market quotations may not be readily available, and the securities may
have significant volatility. In addition, the Fund may get only limited
information about the issuer of a restricted security and therefore may be less
able to predict a loss.
Rule
144A Securities and Other Exempt Securities Risk. The Fund
may invest in Rule 144A securities and other types of exempt securities, which
are not registered for sale pursuant to an exemption from registration under the
Securities Act of 1933, as amended. These securities,
while
initially privately placed, typically may be resold only to qualified
institutional buyers, or in a privately negotiated transaction, or to a limited
number of purchasers, or in limited quantities after they have been held for a
specified period of time and other conditions are met for an exemption from
registration. If there are an insufficient number of qualified institutional
buyers interested in purchasing such securities at a particular time, the Fund
may have difficulty selling such securities at a desirable time or price. As a
result, the Fund’s investment in such securities may be subject to increased
liquidity risk. In addition, the issuers of Rule 144A securities may require
their qualified institutional buyers (such as the Fund) to keep certain offering
information confidential, which could adversely affect the ability of the Fund
to sell such securities.
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,
8 Invesco
Intermediate Bond Factor Fund
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 or deflation 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 Public Company Accounting Oversight Board (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 holders, some
governmental debtors have in the past been able to reschedule or restructure
their debt payments or declare moratoria on payments.
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.
TBA
Transactions Risk. TBA
transactions involve the risk that the securities received may be less favorable
than what was anticipated by the Fund when entering into the TBA transaction.
TBA transactions also involve the risk that the counterparty will fail to
deliver the securities, exposing the Fund to further losses. Whether or not the
Fund takes delivery of the securities at the termination date of a TBA
transaction, the Fund will nonetheless be exposed to changes in the value of the
underlying investments during the term of the agreement.
Mortgage-
and Asset-Backed Securities Risk. Mortgage-
and asset-backed securities, including collateralized debt obligations and
collateralized mortgage obligations, differ from conventional debt securities
because principal is paid back over the life of the security rather than at
maturity. Mortgage- and asset-backed securities are subject to prepayment or
call risk, which is the risk that a borrower's payments may be received earlier
or later than expected due to changes in prepayment rates on underlying loans.
Faster prepayments often happen when interest rates are falling. As a result,
the Fund may reinvest these early payments at lower interest rates, thereby
reducing the Fund's income. Mortgage- and asset-backed securities also are
subject to extension risk. An unexpected rise in interest rates could reduce the
rate of prepayments and extend the life of the mortgage- and asset-backed
securities, causing the price of the mortgage- and asset-backed securities and
the Fund’s share price to fall
9 Invesco
Intermediate Bond Factor Fund
and would
make the mortgage- and asset-backed securities more sensitive to interest rate
changes. An unexpectedly high rate of defaults on the mortgages held by a
mortgage pool will adversely affect the value of mortgage-backed securities and
will result in losses to the Fund. Privately-issued mortgage-backed securities
and asset-backed securities may be less liquid than other types of securities
and the Fund may be unable to sell these securities at the time or price it
desires. During periods of market stress or high redemptions, the Fund may be
forced to sell these securities at significantly reduced prices, resulting in
losses. Liquid privately-issued mortgage-backed securities and asset-backed
securities can become illiquid during periods of market stress. Privately-issued
mortgage-related securities are not subject to the same underwriting
requirements for the underlying mortgages that are applicable to those
mortgage-related securities that have government or government-sponsored entity
guarantees. As a result, the mortgage loans underlying privately-issued
mortgage-related securities may, and frequently do, have less favorable
collateral, credit risk, liquidity risk or other underwriting characteristics
than government or government-sponsored mortgage-related securities and have
wider variances in a number of terms including interest rate, term, size,
purpose and borrower characteristics. The Fund may invest in mortgage pools that
include subprime mortgages, which are loans made to borrowers with weakened
credit histories or with lower capacity to make timely payments on their
mortgages. Liquidity risk is even greater for mortgage pools that include
subprime mortgages.
Derivatives
Risk. A derivative
is an instrument whose value depends largely on (and is derived from) the value
of an underlying security, currency, commodity, interest rate, index or other
asset (each referred to as an underlying asset). In addition to risks relating
to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
■
Counterparty
Risk. Certain
derivatives do not trade on an established exchange (referred to as
over-the-counter (OTC) derivatives) and are simply financial contracts between
the Fund and a counterparty. When the Fund is owed money on an OTC derivative,
the Fund is dependent on the counterparty to pay or, in some cases, deliver the
underlying asset, unless the Fund can otherwise sell its derivative contract to
a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and
ability to pay or perform) may be negatively impacted by factors affecting
financial institutions generally. In addition, in the event that a counterparty
becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that
the Fund has on deposit with the counterparty could be delayed or impaired. For
derivatives traded on a centralized exchange, the Fund generally is dependent
upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on
derivative instruments for which the Fund is owed money.
■
Leverage
Risk. Many
derivatives do not require a payment up front equal to the economic exposure
created by holding a position in the derivative, which creates a form of
leverage. As a result, an adverse change in the value of the underlying asset
could result in the Fund sustaining a loss that is substantially greater than
the amount invested in the derivative or the anticipated value of the underlying
asset. In addition, some derivatives have the potential for unlimited loss,
regardless of the size of the Fund’s initial investment. Leverage may therefore
make the Fund’s returns more volatile and increase the risk of loss. In certain
market conditions, losses on derivative 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.
■
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.
■
Interest
Rate Swaps Risk.
Interest rate swaps are subject to interest rate risk and credit risk. An
interest rate swap transaction could result in losses if the underlying asset or
reference rate does not perform as anticipated. Interest rate swaps are also
subject to counterparty risk. If the counterparty fails to meet its obligations,
the Fund may lose money.
■
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.
■
“Structured”
Notes Risk. Structured
notes are subject to interest rate risk. They are also subject to credit risk
with respect both to the issuer and, if applicable, to the underlying security
or obligor. If the underlying investment or index does not perform as
anticipated, the structured note might pay less interest than the stated coupon
payment or repay less principal upon maturity. The price of structured notes may
be very volatile and they may have a limited trading market, making it difficult
to value them or sell them at an acceptable
10 Invesco
Intermediate Bond Factor Fund
price. In
some cases, the Fund may enter into agreements with an issuer of structured
notes to purchase a minimum amount of those notes over time.
■
Swap
Transactions Risk. Under U.S.
financial reform legislation enacted in 2010, certain types of swaps are
required to be executed on a regulated market and cleared through a central
clearing house counterparty, which may entail further risks and costs for the
Fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally
cleared. In a centrally cleared swap, immediately following execution of the
swap agreement, the swap agreement is submitted for clearing to a central
clearing house counterparty, and the Fund faces the central clearing house
counterparty by means of an account with a futures commission merchant that is a
member of the clearing house.
■
Volatility
Swaps Risks. Volatility
swaps are subject to credit risks (if the counterparty fails to meet its
obligations), and the risk that the investment adviser is incorrect in its
forecast of volatility for the underlying security, currency, index or other
financial instrument that is the subject of the swap. If the investment adviser
is incorrect in its forecast, the Fund would likely be required to make a
payment to the counterparty under the swap. Volatility swaps can have the
potential for unlimited losses.
■
Credit
Default Swaps Risk. A credit
default swap enables an investor to buy or sell protection against a credit
event with respect to an issuer, such as an issuer’s failure to make timely
payments of interest or principal on its debt obligations, bankruptcy or
restructuring. A credit default swap may be embedded within a structured note or
other derivative instrument. Credit default swaps are subject to credit
risk of the underlying issuer and to counterparty credit risk. If the
counterparty fails to meet its obligations, the Fund may lose money. Credit
default swaps are also subject to the risk that the Fund will not properly
assess the risk of the underlying issuer. If the Fund is selling credit
protection, there is a risk that a credit event will occur and that the Fund
will have to pay the counterparty. If the Fund is buying credit protection,
there is a risk that no credit event will occur and the Fund will receive no
benefit for the premium paid.
■
Total
Return Swaps Risk. In a total
return swap transaction, one party agrees to pay the other party an amount equal
to the total return on a defined underlying asset or a non-asset reference
during a specified period of time. The underlying asset might be a security or
asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make
periodic payments based on a fixed or variable interest rate or on the total
return from a different underlying asset or non-asset reference. Total
return swaps could result in losses if the underlying asset or reference does
not perform as anticipated. Total return swaps can have the potential for
unlimited losses. They are also subject to counterparty risk. If the
counterparty fails to meet its obligations, the Fund may lose money.
■
Other
Risks. Compared to
other types of investments, derivatives may be harder to value and may also be
less tax efficient, as described under the “Taxes” section of the prospectus. In
addition, changes in government regulation of derivative instruments could
affect the character, timing and amount of the Fund’s taxable income or gains,
and may limit or prevent the Fund from using certain types of derivative
instruments as a part of its investment strategy, which could make the
investment strategy more costly to implement or require the Fund to change its
investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that the Fund uses derivatives for hedging or to gain
or limit exposure to a particular market or market segment, there may be
imperfect correlation between the value of the derivative instrument and the
value of the instrument being hedged or the relevant market or
market
segment, in which case the Fund may not realize the intended benefits. There is
also the risk that during adverse market conditions, an instrument which would
usually operate as a hedge provides no hedging benefits at all. The Fund’s use
of derivatives may be limited by the requirements for taxation of the Fund as a
regulated investment company.
High
Yield Debt Securities (Junk Bond/Below-Investment
Grade) Risk. The Fund’s
investments in high yield debt securities (commonly referred to as junk bonds)
and other lower-rated securities will subject the Fund to substantial risk of
loss. These securities are considered to be speculative with respect to the
issuer’s ability to pay interest and principal when due and are more susceptible
to default or decline in market value due to adverse economic, regulatory,
political or company developments than higher rated or investment grade
securities. Prices of high yield debt securities tend to be very volatile. These
securities are less liquid than investment grade debt securities and may be
difficult to sell at a desirable time or price, particularly in times of
negative sentiment toward high yield securities.
Active
Trading Risk. Active
trading of portfolio securities may result in high brokerage costs, which may
lower the Fund’s actual return. Active trading also may increase the proportion
of the Fund’s gains that are short term, which are taxed at a higher rate
than long term gains.
When-Issued,
Delayed Delivery and Forward Commitment Risks. When-issued
and delayed delivery transactions are subject to market risk as the value or
yield of a security at delivery may be more or less than the purchase price or
the yield generally available on securities when delivery occurs. In addition,
the Fund is subject to counterparty risk because it relies on the buyer or
seller, as the case may be, to consummate the transaction, and failure by the
counterparty to complete the transaction may result in the Fund missing the
opportunity of obtaining a price or yield considered to be advantageous. These
transactions have a leveraging effect on the Fund because the Fund commits to
purchase securities that it does not have to pay for until a later date. These
investments therefore increase the Fund’s overall investment exposure and, as a
result, its volatility. Typically, no income accrues on securities the Fund has
committed to purchase prior to the time delivery of the securities is
made.
Management
Risk. The Fund is
actively managed and depends heavily on the Adviser’s judgment about markets,
interest rates or the attractiveness, relative values, liquidity, or potential
appreciation of particular investments made for the Fund’s portfolio. The Fund
could experience losses if these judgments prove to be incorrect. There can be
no guarantee that the Adviser’s investment techniques or investment decisions
will produce the desired results. Additionally, legislative, regulatory, or tax
developments may affect the investments or investment strategies available to
the Adviser in connection with managing the Fund, which may also adversely
affect the ability of the Fund to achieve its investment objective.
Portfolio
Holdings
A description
of Fund policies and procedures with respect to the disclosure of Fund portfolio
holdings is available in the SAI, which is available at
www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment
operations of the Fund as well as other investment portfolios that encompass a
broad range of investment objectives, and has agreed to perform or arrange for
the performance of the Fund’s day-to-day management. The Adviser is located at
1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as
successor in interest to multiple investment advisers, has been an investment
adviser since 1976.
Sub-Advisers. Invesco has
entered into one or more Sub-Advisory Agreements with certain affiliates to
serve as sub-advisers to the Fund (the
11 Invesco
Intermediate Bond Factor Fund
Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary
investment management services, investment advice, and/or order execution
services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are
described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has
also granted exemptive relief that permits the Adviser, subject to certain
conditions, to enter into new sub-advisory agreements with affiliated or
unaffiliated sub-advisers on behalf of the Fund without shareholder approval.
The exemptive relief also permits material amendments to existing sub-advisory
agreements with affiliated or unaffiliated sub-advisers (including the
Sub-Advisory Agreements with the Sub-Advisers) without shareholder approval.
Under this structure, the Adviser has ultimate responsibility, subject to
oversight of the Board, for overseeing such sub-advisers and recommending to the
Board their hiring, termination, or replacement. The structure does not permit
investment advisory fees paid by the Fund to be increased without shareholder
approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee
sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With respect
to the Fund, the Adviser has claimed an exclusion from the definition of
“commodity pool operator” (CPO) under the Commodity Exchange Act (CEA) and the
rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not
subject to CFTC registration or regulation as a CPO. In addition, the Adviser is
relying upon a related exclusion from the definition of “commodity trading
advisor” (CTA) under the CEA and the rules of the CFTC with respect to the
Fund.
The
terms of the CPO exclusion require the Fund, among other things, to adhere to
certain limits on its investments in “commodity interests.” Commodity interests
include commodity futures, commodity options and swaps, which in turn include
non-deliverable forwards. The Fund is permitted to invest in these instruments
as further described in the Fund’s SAI. However, the Fund is not intended as a
vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on
these exclusions, or the Fund, its investment strategies or this
prospectus.
Adviser
Compensation
During the
fiscal year ended February 29, 2024, the Adviser did not receive any
compensation from the Fund’s, 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.
Portfolio
Managers
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Fund’s portfolio:
■
Noelle Corum,
CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has
been associated with Invesco and/or its affiliates since 2010.
■
Jacob Habibi,
CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has
been associated with Invesco and/or its affiliates since
2001.
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 4.25% initial sales charge
as listed under the heading “Category II 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,
monthly.
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.
12 Invesco
Intermediate Bond Factor Fund
Financial Highlights
The financial
highlights information presented for the Fund includes the financial history of
the predecessor fund, which was reorganized into the Fund after the close of
business on May 24, 2019. The financial highlights show the Fund’s and
predecessor fund’s financial history for the past five fiscal years or, if
shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The
financial highlights table is intended to help you understand the Fund’s and the
predecessor fund’s financial performance. Certain information reflects financial
results for a single Fund share.
The
total returns in the table represent the rate that an investor would
have earned
(or lost) on an investment in the Fund or predecessor fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, whose report, along with the Fund’s financial statements, is
included in the Fund’s annual report, which is available upon request. Effective
August 31, 2019, the Fund changed its fiscal year end from July 31 to the last
day of February.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized) |
Total
from
investment
operations |
Dividends
from
net
investment
income |
Distributions
from
net
realized
gains |
Return
of
capital |
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(c) |
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
A | |||||||||||||||
|
Year
ended 02/29/24 |
$9.10 |
$0.30 |
$0.05 |
$0.35 |
$(0.29
) |
$— |
$— |
$(0.29
) |
$9.16 |
3.90
%(e) |
$98,542 |
0.53
%(e) |
0.85
%(e) |
3.32
%(e) |
276
% |
|
Year
ended 02/28/23 |
10.45 |
0.20 |
(1.20
) |
(1.00
) |
(0.24
) |
— |
(0.11
) |
(0.35
) |
9.10 |
(9.62
)(e) |
94,721 |
0.52
(e) |
0.81
(e) |
2.06
(e) |
301 |
|
Year
ended 02/28/22 |
10.93 |
0.13 |
(0.43
) |
(0.30
) |
(0.18
) |
— |
— |
(0.18
) |
10.45 |
(2.80
)(e) |
118,156 |
0.52
(e) |
0.71
(e) |
1.18
(e) |
207 |
|
Year
ended 02/28/21 |
11.27 |
0.16 |
0.10 |
0.26 |
(0.21
) |
(0.39
) |
— |
(0.60
) |
10.93 |
2.30
(e) |
132,856 |
0.52
(e) |
0.96
(e) |
1.42
(e) |
292 |
|
Seven
months ended 02/29/20 |
10.88 |
0.18 |
0.40 |
0.58 |
(0.19
) |
— |
— |
(0.19
) |
11.27 |
5.39 |
122,371 |
1.05
(f) |
1.05
(f) |
2.80
(f) |
64 |
|
Year
ended 07/31/19 |
10.43 |
0.32 |
0.45 |
0.77 |
(0.32
) |
— |
— |
(0.32
) |
10.88 |
7.52 |
119,300 |
0.97 |
0.97 |
3.07 |
108 |
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended 02/29/24 |
9.10 |
0.23 |
0.05 |
0.28 |
(0.22
) |
— |
— |
(0.22
) |
9.16 |
3.13 |
10,188 |
1.28 |
1.61 |
2.57 |
276 |
|
Year
ended 02/28/23 |
10.45 |
0.12 |
(1.20
) |
(1.08
) |
(0.19
) |
— |
(0.08
) |
(0.27
) |
9.10 |
(10.31
) |
10,003 |
1.27 |
1.57 |
1.31 |
301 |
|
Year
ended 02/28/22 |
10.93 |
0.05 |
(0.43
) |
(0.38
) |
(0.10
) |
— |
— |
(0.10
) |
10.45 |
(3.53
) |
14,724 |
1.27 |
1.47 |
0.43 |
207 |
|
Year
ended 02/28/21 |
11.26 |
0.08 |
0.10 |
0.18 |
(0.12
) |
(0.39
) |
— |
(0.51
) |
10.93 |
1.56 |
19,013 |
1.27 |
1.72 |
0.67 |
292 |
|
Seven
months ended 02/29/20 |
10.87 |
0.12 |
0.40 |
0.52 |
(0.13
) |
— |
— |
(0.13
) |
11.26 |
4.80 |
23,114 |
1.81
(f) |
1.81
(f) |
1.90
(f) |
64 |
|
Year
ended 07/31/19 |
10.43 |
0.23 |
0.44 |
0.67 |
(0.23
) |
— |
— |
(0.23
) |
10.87 |
6.52 |
23,487 |
1.72 |
1.72 |
2.17 |
108 |
|
| |||||||||||||||
|
Class
R | |||||||||||||||
|
Year
ended 02/29/24 |
9.11 |
0.28 |
0.05 |
0.33 |
(0.27
) |
— |
— |
(0.27
) |
9.17 |
3.64 |
18,498 |
0.78 |
1.11 |
3.07 |
276 |
|
Year
ended 02/28/23 |
10.45 |
0.17 |
(1.19
) |
(1.02
) |
(0.22
) |
— |
(0.10
) |
(0.32
) |
9.11 |
(9.75
) |
17,545 |
0.77 |
1.07 |
1.81 |
301 |
|
Year
ended 02/28/22 |
10.93 |
0.10 |
(0.43
) |
(0.33
) |
(0.15
) |
— |
— |
(0.15
) |
10.45 |
(3.04
) |
18,987 |
0.77 |
0.97 |
0.93 |
207 |
|
Year
ended 02/28/21 |
11.27 |
0.13 |
0.10 |
0.23 |
(0.18
) |
(0.39
) |
— |
(0.57
) |
10.93 |
2.02 |
19,876 |
0.77 |
1.22 |
1.17 |
292 |
|
Seven
months ended 02/29/20 |
10.88 |
0.15 |
0.40 |
0.55 |
(0.16
) |
— |
— |
(0.16
) |
11.27 |
5.09 |
20,366 |
1.31
(f) |
1.31
(f) |
2.40
(f) |
64 |
|
Year
ended 07/31/19 |
10.44 |
0.28 |
0.44 |
0.72 |
(0.28
) |
— |
— |
(0.28
) |
10.88 |
7.06 |
20,511 |
1.22 |
1.22 |
2.67 |
108 |
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended 02/29/24 |
9.10 |
0.33 |
0.03 |
0.36 |
(0.31
) |
— |
— |
(0.31
) |
9.15 |
4.05 |
70,445 |
0.28 |
0.61 |
3.57 |
276 |
|
Year
ended 02/28/23 |
10.44 |
0.22 |
(1.19
) |
(0.97
) |
(0.26
) |
— |
(0.11
) |
(0.37
) |
9.10 |
(9.30
) |
56,121 |
0.27 |
0.57 |
2.31 |
301 |
|
Year
ended 02/28/22 |
10.92 |
0.15 |
(0.42
) |
(0.27
) |
(0.21
) |
— |
— |
(0.21
) |
10.44 |
(2.56
) |
29,184 |
0.27 |
0.47 |
1.43 |
207 |
|
Year
ended 02/28/21 |
11.26 |
0.19 |
0.10 |
0.29 |
(0.24
) |
(0.39
) |
— |
(0.63
) |
10.92 |
2.58 |
17,750 |
0.27 |
0.72 |
1.67 |
292 |
|
Seven
months ended 02/29/20 |
10.88 |
0.20 |
0.40 |
0.60 |
(0.22
) |
— |
— |
(0.22
) |
11.26 |
5.55 |
19,032 |
0.81
(f) |
0.81
(f) |
3.09
(f) |
64 |
|
Year
ended 07/31/19 |
10.43 |
0.35 |
0.45 |
0.80 |
(0.35
) |
— |
— |
(0.35
) |
10.88 |
7.81 |
20,940 |
0.73 |
0.73 |
3.37 |
108 |
|
| |||||||||||||||
|
Class
R5 | |||||||||||||||
|
Year
ended 02/29/24 |
9.10 |
0.32 |
0.05 |
0.37 |
(0.31
) |
— |
— |
(0.31
) |
9.16 |
4.16 |
9 |
0.28 |
0.44 |
3.57 |
276 |
|
Year
ended 02/28/23 |
10.44 |
0.22 |
(1.19
) |
(0.97
) |
(0.26
) |
— |
(0.11
) |
(0.37
) |
9.10 |
(9.30
) |
9 |
0.27 |
0.41 |
2.31 |
301 |
|
Year
ended 02/28/22 |
10.92 |
0.16 |
(0.43
) |
(0.27
) |
(0.21
) |
— |
— |
(0.21
) |
10.44 |
(2.56
) |
10 |
0.27 |
0.37 |
1.43 |
207 |
|
Year
ended 02/28/21 |
11.27 |
0.19 |
0.09 |
0.28 |
(0.24
) |
(0.39
) |
— |
(0.63
) |
10.92 |
2.49 |
10 |
0.27 |
0.47 |
1.67 |
292 |
|
Seven
months ended 02/29/20 |
10.87 |
0.20 |
0.40 |
0.60 |
(0.20
) |
— |
— |
(0.20
) |
11.27 |
5.59 |
11 |
0.60
(f) |
0.60
(f) |
3.09
(f) |
64 |
|
Period
ended 07/31/19(g)
|
10.67 |
0.07 |
0.19 |
0.26 |
(0.06
) |
— |
— |
(0.06
) |
10.87 |
2.44 |
10 |
0.62
(f) |
0.62
(f) |
3.39
(f) |
108 |
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended 02/29/24 |
9.10 |
0.33 |
0.04 |
0.37 |
(0.31
) |
— |
— |
(0.31
) |
9.16 |
4.16 |
17,088 |
0.28 |
0.44 |
3.57 |
276 |
|
Year
ended 02/28/23 |
10.44 |
0.22 |
(1.19
) |
(0.97
) |
(0.26
) |
— |
(0.11
) |
(0.37
) |
9.10 |
(9.30
) |
12,072 |
0.27 |
0.41 |
2.31 |
301 |
|
Year
ended 02/28/22 |
10.92 |
0.16 |
(0.43
) |
(0.27
) |
(0.21
) |
— |
— |
(0.21
) |
10.44 |
(2.56
) |
17,022 |
0.27 |
0.37 |
1.43 |
207 |
|
Year
ended 02/28/21 |
11.27 |
0.19 |
0.09 |
0.28 |
(0.24
) |
(0.39
) |
— |
(0.63
) |
10.92 |
2.49 |
8,392 |
0.27 |
0.47 |
1.67 |
292 |
|
Seven
months ended 02/29/20 |
10.88 |
0.20 |
0.40 |
0.60 |
(0.21
) |
— |
— |
(0.21
) |
11.27 |
5.60 |
5,795 |
0.58
(f) |
0.58
(f) |
3.14
(f) |
64 |
|
Year
ended 07/31/19 |
10.44 |
0.36 |
0.43 |
0.79 |
(0.35
) |
— |
— |
(0.35
) |
10.88 |
7.80 |
5,662 |
0.56 |
0.56 |
3.41 |
108 |
|
| |||||||||||||||
|
(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) |
Does
not include indirect expenses from affiliated fund fees and expenses of
0.02% for the seven months ended February 29, 2020 and the year ended July
31, 2019. |
13 Invesco
Intermediate Bond Factor Fund
|
(d) |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. For the seven months ended February 29,
2020, the portfolio turnover calculation
excludes
purchase and sale transactions of To Be Announced (TBA) mortgage-related
securities of $11,531,839 and 13,476,801, respectively. For the year ended
July 31, 2019, the portfolio
turnover
calculation excludes purchase and sale transactions of TBA
mortgage-related securities of $129,169,490 and $127,412,648,
respectively. |
|
(e) |
The
total return, ratio of expenses to average net assets and ratio of net
investment income to average net assets reflect actual 12b-1 fees of 0.24%
for the year ended February 29, 2024 and
0.24%
for the years ended February 28, 2023, 2022 and 2021,
respectively. |
|
(f) |
Annualized. |
|
(g) |
Commencement
date after the close of business on May
24, 2019. |
14 Invesco
Intermediate Bond Factor 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 the Invesco Funds and their share classes that
have different fees and expenses. Certain Invesco Funds have their
own
“Shareholder
Account Information Section”
that should
be consulted for specific information related 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—06/24
|
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 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 Invesco Government Money Market
Fund may make additional purchases into Class AX and CX, respectively, of
Invesco Government Money Market 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 CX
shares of
Invesco Government Money Market Fund, 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 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 funds,
states, cities or government agencies), funds of funds or other pooled
A-2 The
Invesco Funds
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.
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.
Closure
of Class R5 shares
The
Fund will discontinue sales of its Class R5 shares to new investors after the
close of business on September 30, 2024. Existing investors who were invested in
Class R5 shares of the Fund on September 30, 2024, and who remain invested in
Class R5 shares of the Fund after that date, may continue to make additional
purchases of Class R5 shares of the Fund. Any Employer Sponsored Retirement and
Benefit Plan or its affiliated plans may continue to make additional purchases
of Class R5 shares of the Fund and may add new participant accounts at the plan
level that may purchase Class R5 shares of the Fund if the Employer Sponsored
Retirement and Benefit Plan or its affiliated plan were invested in Class R5
shares of the Fund as of September 30, 2024 and remain invested in Class R5
shares of the Fund after that date.
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, or
if you currently own Class Y shares held in a previously eligible account (as
outlined in (i) in the above paragraph) for which you no longer have a financial
intermediary.
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
A-3 The
Invesco Funds
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 |
|
| |||
|
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.
■
Certain
participants in Employer-Sponsored IRA Plans utilizing Invesco Trust Company
custodial accounts who were offered Class A shares without an initial sales
charge prior to December 15, 2023, and who continue to purchase Class A
shares.
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.
A-4 The
Invesco Funds
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
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.
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).
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.
Edward
D.
Jones
& Co., L.P.
(“Edward
Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
Effective
on or after December 15, 2023, the following information supersedes
prior information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
“shareholders”) purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as “breakpoints”) and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information (“SAI”) or through another broker-dealer. In all
instances, it is the shareholder's
A-5 The
Invesco Funds
responsibility
to inform Edward Jones at the time of purchase of any relationship, holdings of
Invesco funds, 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.
■
Breakpoints
■
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
■
Rights of
Accumulation (“ROA”)
■
The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of Invesco funds held by the shareholder or in
an account grouped by Edward Jones with other accounts for the purpose of
providing certain pricing considerations (“pricing groups”). If grouping assets
as a shareholder, this includes all share classes held on the Edward Jones
platform and/or held on another platform. The inclusion of eligible fund family
assets in the ROA calculation is dependent on the shareholder notifying Edward
Jones of such assets at the time of calculation. Money market funds are included
only if such shares were sold with a sales charge at the time of purchase or
acquired in exchange for shares purchased with a sales charge.
■
The employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping as opposed to including all share classes at a shareholder or pricing
group level.
■
ROA is
determined by calculating the higher of cost minus redemptions or market value
(current shares x NAV).
■
Letter of
Intent (“LOI”)
■
Through a
LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI.
The LOI is
determined
by
calculating
the higher of cost or market value
of qualifying
holdings at LOI initiation in combination with the value that the shareholder
intends to buy over a 13-month period to calculate the front-end sales charge
and any breakpoint
discounts.
Each purchase
the shareholder makes during that 13-month
period will
receive the sales charge and
breakpoint
discount
that applies
to the total amount.
The inclusion
of eligible fund family assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if LOI is not met.
■
If the
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
■
Sales Charge
Waivers
Sales charges
are waived for the following shareholders and in the following
situations:
■
Associates of
Edward Jones and its affiliates and other accounts 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: the
proceeds are from the sale of shares within 60 days of the purchase, the sale
and purchase
are made from
a share
class that
charges a
front load
and one of the following:
●
The
redemption and repurchase occur in the same account.
●
The
redemption proceeds are used to process an: IRA contribution, excess
contributions, conversion, recharacterizing of contributions, or distribution,
and the repurchase is done in an account within the same Edward Jones grouping
for ROA.
■
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.
■
Purchases of
Class 529-A shares through a rollover from either another
education
savings plan or a security used for qualified distributions.
■
Purchases of
Class 529 shares made for recontribution of refunded amounts.
■
Contingent
Deferred Sales Charge (“CDSC”) Waivers
If the
shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
■
The death or
disability of the shareholder.
■
Systematic
withdrawals with up to 10%
per year of
the account value.
■
Return of
excess contributions from an Individual Retirement Account (IRA).
■
Shares
redeemed as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
■
Shares
redeemed to pay Edward Jones fees or costs in such cases where the transaction
is initiated by Edward Jones.
■
Shares
exchanged in an Edward Jones fee-based program.
■
Shares
acquired through NAV reinstatement.
■
Shares
redeemed at the discretion of Edward Jones for Minimums Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
●
Initial
purchase minimum: $250
●
Subsequent
purchase minimum: none
Minimum
Balances
●
Edward Jones
has the right to redeem at its
discretion
fund holdings
with a balance of $250 or less. The following are examples of accounts that are
not included in this policy:
○
A fee-based
account held on an Edward Jones platform
○
A 529 account
held on an Edward Jones platform
○
An account
with an active systematic investment plan or LOI
Exchanging
Share Classes
●
At any time
it deems necessary, Edward Jones has the authority
to exchange
at NAV
a
shareholder's holdings in a fund to Class A shares of the same fund.
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.
A-6 The
Invesco Funds
■
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.
J.P.
Morgan
Securities
LLC
If you
purchase or hold fund shares through an applicable
J.P.
Morgan
Securities LLC brokerage account,
you will be
eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred
sales charge
(“CDSC”), or back-end sales charge, waivers),
share class
conversion policy and discounts, which may differ from those disclosed elsewhere
in this fund’s prospectus or Statement of Additional Information
(“SAI”).
Front-end
sales
charge waivers on Class A shares available at J.P. Morgan Securities
LLC
■
Shares
exchanged from Class C (i.e., level-load) shares that are no longer subject to a
CDSC and are exchanged into Class A shares of the same fund pursuant to J.P.
Morgan Securities LLC’s share class exchange policy.
■
Qualified
employer-sponsored defined contribution and defined benefit retirement plans,
nonqualified deferred compensation plans,
other
employee benefit plans and trusts used to fund those plans. For purposes of this
provision, such plans do not include SEP IRAs,
SIMPLE
IRAs,
SAR-SEPs or
501(c)(3)
accounts.
■
Shares of
funds purchased through J.P.
Morgan
Securities LLC Self-Directed Investing accounts.
■
Shares
purchased through rights of reinstatement.
■
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 J.P.
Morgan
Securities
LLC
or its
affiliates and
their spouse
or financial dependent as defined by J.P. Morgan Securities LLC.
Class
C to Class A share conversion
■
A shareholder
in the fund’s Class C shares will have their shares converted by
J.P.
Morgan
Securities LLC to Class A shares (or the appropriate share class) of the same
fund if the shares are no longer subject to a CDSC and the conversion is
consistent with J.P.
Morgan
Securities LLC’s policies and procedures.
CDSC
waivers
on Class A and C Shares available at J.P. Morgan Securities LLC
■
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 retirement accounts
pursuant to the Internal Revenue Code.
■
Shares
acquired through a right of reinstatement.
Front-end
load discounts
available at J.P. Morgan Securities LLC: breakpoints, rights of accumulation
& letters of intent
■
Breakpoints
as described in the 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 within the purchaser’s
household at J.P.
Morgan
Securities LLC.
Eligible fund
family assets not held at J.P.
Morgan
Securities LLC (including 529 program holdings, where applicable) may be
included in the ROA calculation only if the shareholder notifies their financial
advisor about such assets.
Letters
of Intent (“LOI”) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through J.P. Morgan Securities LLC, over a
13-month period of time (if applicable).
Merrill
Lynch
(“Merrill”)
Purchases or
sales of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund
shares through a Merrill platform or account will be eligible only for the
following sales load waivers (front-end,
contingent
deferred,
or back-end
waivers) and discounts, which differ from those disclosed elsewhere in this
prospectus or SAI. Purchasers will have to buy mutual fund shares directly from
the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It
is the client’s responsibility to notify Merrill at the time of purchase or
sale of any
relationship or other facts that qualify the transaction for a waiver or
discount. A Merrill representative may ask for reasonable documentation of such
facts and Merrill may condition the granting of a waiver or discount on the
timely receipt of such documentation.
Additional
information on waivers and discounts is available in the Merrill Sales
Load Waiver and Discounts Supplement (the “Merrill SLWD Supplement”) and in the
Mutual Fund Investing at Merrill pamphlet at ml.com/funds. Clients are
encouraged to review these documents and speak with their financial advisor to
determine whether a transaction is eligible for a waiver or
discount.
■
Front-end
Load Waivers Available at Merrill
■
Shares of
mutual funds available for purchase by employer-sponsored retirement, deferred
compensation, and employee benefit plans (including health savings accounts) and
trusts used to fund those plans provided the shares are not held in a
commission-based brokerage account and shares are held for the benefit of the
plan. For purposes of this provision, employer-sponsored retirement plans do not
include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
■
Shares
purchased through a Merrill investment advisory program.
A-7 The
Invesco Funds
■
Brokerage
class shares exchanged from advisory class shares due to the holdings moving
from a Merrill investment advisory program to a Merrill brokerage
account.
■
Shares
purchased through the Merrill Edge Self-Directed platform.
■
Shares
purchased through the systematic reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same mutual fund in the same
account.
■
Shares
exchanged from level-load shares to front-end load shares of the same mutual
fund in accordance with the description in the Merrill SLWD
Supplement.
■
Shares
purchased by eligible employees of Merrill or its affiliates and their family
members who purchase shares in accounts within the employee’s Merrill Household
(as defined in the Merrill SLWD Supplement).
■
Shares
purchased by eligible persons associated with the fund as defined in this
prospectus (e.g. the fund’s officers or trustees).
■
Shares
purchased from the proceeds of a mutual fund redemption
in front-end
load shares provided (1) the repurchase is in a mutual fund within the same fund
family;
(2) the
repurchase occurs within 90 calendar days from the redemption trade date, and
(3) the redemption and purchase occur in the same account
(known
as Rights of
Reinstatement).
Automated
transactions
(i.e.
systematic
purchases and withdrawals) and purchases made after
shares are
automatically sold to pay Merrill’s account maintenance fees are not eligible
for Rights of Reinstatement.
■
Contingent
Deferred Sales Charge (“CDSC”) Waivers on Front-end, Back-end, and Level Load
Shares Available at Merrill
■
Shares sold
due to the client’s death or disability (as defined by Internal Revenue Code
Section 22(e)(3)).
■
Shares sold
pursuant to a systematic withdrawal program subject to Merrill’s maximum
systematic withdrawal limits as described in the Merrill SLWD
Supplement.
■
Shares sold
due to 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 investor reaching the qualified age based on applicable IRS
regulation.
■
Front-end or
level-load shares held in commission-based, non-taxable retirement brokerage
accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs or
Keogh plans) that are transferred to fee-based accounts or platforms and
exchanged for a lower cost share class of the same mutual fund.
■
Front-end
Load Discounts Available at Merrill: Breakpoints, Rights of Accumulation &
Letters of Intent
■
Breakpoint
discounts, as described in this prospectus, where the sales load is at or below
the maximum sales load that Merrill permits to be assessed to a front-end load
purchase, as described in the Merrill SLWD Supplement.
■
Rights of
Accumulation (ROA), as described in the Merrill SLWD Supplement, which entitle
clients to breakpoint discounts based on the aggregated holdings of mutual fund
family assets held in accounts in their Merrill Household.
■
Letters of
Intent (LOI), which allow for breakpoint discounts on eligible new purchases
based on anticipated future eligible purchases within a fund family at Merrill,
in accounts within your Merrill Household, as further described in the Merrill
SLWD Supplement.
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.
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
A-8 The
Invesco Funds
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.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to
transactions and positions held in fund shares purchased through PFSI and held
on the mutual fund platform of its affiliate, Primerica Shareholder Services
(“PSS”). Clients of PFSI (also referred to as “shareholders”) purchasing fund
shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which
can differ from share classes, discounts and waivers described elsewhere in this
prospectus or the related statement of additional information (“SAI”) or through
another broker-dealer. In all instances, it is the shareholder’s responsibility
to inform PFSI at the time of a purchase of all holdings of Invesco Funds on the
PSS platform, or other facts qualifying the purchaser for discounts or waivers.
PFSI may request reasonable documentation of such facts, and condition the
granting of any discount or waiver on the timely receipt of such documents.
Shareholders should contact PSS if they have questions regarding their
eligibility for these discounts and waivers.
Share
Classes
■
Class A
shares: in non-retirement accounts, individual retirement accounts (IRA), SEP
IRAs, SIMPLE IRAs, Keogh Plans, and all other account types unless expressly
provided for below.
■
Class C
shares: only in accounts with existing Class C share holdings.
Breakpoints
■
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are
purchasing.
Rights
of Accumulation (“ROA”)
■
The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except any assets held in group retirement
plans) of Invesco Funds held by the shareholder on the PSS Platform. The
inclusion of eligible fund family assets in the ROA calculation is dependent on
the shareholder notifying PFSI of such assets at the time of calculation. Shares
of money market funds are included only if such shares were acquired in exchange
for shares of another Invesco Fund purchased with a sales charge. No shares of
Invesco Funds held by the shareholder away from the PSS platform will be granted
ROA with shares of any Invesco Fund purchased on the PSS platform.
■
Any SEP IRA
plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS
platform will be defaulted to plan-level grouping for purposes of ROA, which
allows each participating employee ROA with all other eligible shares held in
plan accounts on the PSS platform. At any time, a participating employee may
elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing
employee ROA with her other eligible holdings on the PSS platform, but not with
all other eligible participant holdings in the plan. Eligible shares held in
plan accounts electing shareholder-level grouping will not be available for
purposes of ROA to plan accounts electing plan-level grouping.
■
ROA is
determined by calculating the higher of cost minus redemptions or current market
value (current shares x NAV).