Invesco Morningstar MLP Distributing Fund (MLPD)

Overview

The fund is an investment vehicle focused on employing a strategy based on covered calls, aiming to generate returns derived from its underlying index. Managed by a team of investment professionals, the fund dedicates at least 80% of its net assets, and any borrowings meant for investment purposes, towards acquiring securities that are constituents of its underlying index. This index, curated by Cboe Global Indices, LLC, is designed to track the performance of a hypothetical portfolio that utilizes a covered call strategy. Notably, the fund is categorized as non-diverse, meaning its investments are concentrated rather than spread across a wide array of securities.

Products and Services

• Covered Call Investment Strategy

  The fund's principal investment strategy involves allocating a significant portion of its assets towards executing a covered call strategy. This involves holding a portfolio of securities and selling call options on these assets. The underlying index, managed by Cboe Global Indices, LLC, serves as a benchmark for the performance of this approach. This strategy aims to generate income from the options premium, in addition to potential price appreciation of the underlying securities.

• Non-Diversified Fund Structure

  Unlike diversified funds, this fund focuses its investments in a select group of securities, as reflected in its underlying index. This approach allows the fund to potentially capitalize on targeted investment opportunities, although it also entails a higher level of risk compared to diversified funds. The non-diversified status of the fund implies a concentrated exposure to the performance of the securities within its covered call strategy portfolio.