Invesco High Yield Municipal Fund Class C (ACTFX)

Overview

The company operates a fund focused on investments in municipal securities. Under normal market conditions, the company dedicates at least 80% of its net assets, along with any borrowings for investment purposes, to municipal securities at the time of investment. This focus on municipal securities is central to the company’s investment strategy, aiming to provide investors with exposure to the municipal bond market. The company also emphasizes investments in higher yielding, albeit medium- to lower-grade municipal securities, allocating at least 75% of its net assets to such investments. This approach is indicative of a strategy that seeks to balance the risk and reward associated with investing in municipal securities that may offer higher yields but come with increased risk compared to higher-grade securities. Additionally, the company imposes a restriction on its investments by limiting exposure to industrial development revenue bonds issued for companies in the same industry to no more than 25% of its net assets, reflecting a prudent measure to diversify risk and avoid overconcentration in any single industry.

Products and Services

• Municipal Securities Investment

  The core service provided by the company involves the investment of a substantial portion of its assets in municipal securities. This product is geared towards investors looking to gain exposure to the municipal bond market, offering potential benefits such as tax-free interest income, depending on the investor’s tax situation and the nature of the bonds. The strategy underpinning this service emphasizes the importance of municipal securities as a component of the fund’s investment portfolio.

• Higher Yielding Municipal Securities

  A significant focus of the fund's portfolio is on higher yielding, medium- to lower-grade municipal securities. This service targets investors seeking higher income from their investments, albeit with a higher risk compared to investments in higher-grade municipal bonds. By investing in these types of securities, the fund aims to achieve a balance between income generation and risk management, appealing to a segment of investors with a more aggressive investment profile.

• Limitation on Industrial Development Revenue Bonds

  The fund enacts a specific investment restriction by limiting its exposure to industrial development revenue bonds issued for companies within the same industry to a maximum of 25% of its net assets. This policy is designed to mitigate the risks associated with sector concentration, thereby protecting the fund’s investments from significant downturns in any single industry. This prudent risk management approach serves to safeguard the interests of the fund’s investors by ensuring a diversified investment portfolio.