| Summary Prospectus |
December 16, 2022 |
Invesco Conservative Income Fund
Class: A (ICIVX), Y (ICIYX), R6 (ICIRX)
Before you invest, you may want to
review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus, reports to shareholders, and other
information about the Fund online at www.invesco.com/prospectus. You can also get this information at no cost by calling (800) 959-4246 or by sending an e-mail request to
ProspectusRequest@invesco.com. The Fund’s prospectus and statement of additional information, both dated December 16, 2022 (as each may be amended or supplemented), are
incorporated by reference into this Summary Prospectus and may be obtained, free of charge, at the website, phone number or e-mail address noted above.
Investment Objective(s)
The
Fund's investment objective is to provide capital preservation and current income while maintaining liquidity.
Fees and Expenses of the Fund
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 and Class R6 shares.
Shareholder Fees (fees paid directly from your investment)
| Class: |
A |
Y |
R6 |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
None |
None |
None |
| | |||
| Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, whichever is less) |
None |
None |
None |
| | |||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
| Class: |
A |
Y |
R6 |
| Management Fees |
0.23% |
0.23% |
0.23% |
| | |||
| Distribution and/or Service (12b-1) Fees |
0.10 |
None |
None |
| | |||
| Other Expenses |
0.11 |
0.11 |
0.06 |
| | |||
| Total Annual Fund Operating Expenses |
0.44 |
0.34 |
0.29 |
| | |||
| Fee Waiver and/or Expense Reimbursement1
|
0.04 |
0.04 |
None |
| | |||
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement |
0.40 |
0.30 |
0.29 |
| | |||
1
Invesco Advisers, Inc. (Invesco or the Adviser) has contractually agreed to waive advisory
fees and/or reimburse expenses to the extent necessary to limit Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement (excluding certain items discussed in the SAI) of Class A, Class Y and Class R6 shares to 0.40%, 0.30% and 0.30%, respectively, of the Fund's average daily net assets (the “expense limits”). Unless Invesco continues
the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits without
approval of the Board of Trustees.
Example.
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
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 |
$41 |
$137 |
$242 |
$551 |
| | ||||
| Class Y |
$31 |
$105 |
$187 |
$427 |
| | ||||
| Class R6 |
$30 |
$93 |
$163 |
$368 |
| | ||||
Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 53% of the average value of its portfolio.
Principal Investment Strategies of the Fund
The Fund invests primarily in money market and fixed income securities.
The Fund
invests in a diversified portfolio of short duration, investment grade money market and fixed income securities, including: (i) securities issued by the U.S. Government or its agencies; (ii) certificates of deposit and time deposits from U.S. and foreign
banks; (iii) repurchase agreements; (iv) commercial paper; (v) municipal securities; (vi) domestic and foreign corporate debt obligations; (vii) sovereign debt and obligations of supra-national entities; and (viii) money market
funds. Fixed income securities may include instruments with a fixed or floating rate of interest.
The Fund
may invest in debt securities of foreign issuers denominated in U.S. dollars.
The Fund may engage in repurchase agreement transactions that are collateralized by cash or government
securities. In addition, it may engage in repurchase agreement transactions that are collateralized by
nongovernment securities such as equity securities or fixed income securities that are rated investment
grade and below investment grade by nationally recognized statistical rating organizations (NRSROs) or unrated securities of comparable quality.
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The Fund may purchase asset-backed securities.
The Fund may also invest in new debt offerings and securities that are subject to
resale restrictions such as those contained in Rule 144A promulgated under the Securities Act of 1933, as amended, which securities may be illiquid or thinly traded. The Fund’s investments may include securities that do not produce
immediate cash income, such as zero coupon securities and payment-in-kind securities.
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 Fund may also engage in “to be announced” (TBA) transactions, which are transactions in which a fund buys or sells
mortgage-backed securities on a forward commitment basis.
The Fund can invest in derivative instruments including futures contracts and swap
contracts.
The Fund can use futures contracts, including Treasury and
interest rate futures, to increase or reduce its exposure to interest rate changes.
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 will invest more than 25% of its net assets in the financial services sector.
The Fund will attempt to maintain a dollar-weighted average portfolio duration of
less than one year.
The portfolio managers collaborate with teams of
market-specific specialists to implement the Fund’s strategy. Although these specialists provide
input in the management of the Fund, the portfolio managers retain responsibility for ensuring the Fund is positioned appropriately in terms of risk exposures and portfolio structure.
In general, the portfolio managers will look for attractive risk-reward opportunities
and securities that best enable the Fund to achieve its objectives. Decisions to purchase or sell securities are primarily determined by relative value considerations along with economic and credit-related fundamentals, market supply and demand, market
dislocations and situation-specific opportunities. The purchase or sale of securities may also be related
to a decision to alter the Fund’s risk exposures (such as duration, yield curve positioning, and sector exposure), a need to limit or reduce the Fund’s exposure to a particular security or issuer, degradation of an issuer’s credit quality, or general
liquidity needs of the Fund.
Principal Risks of Investing in the Fund
As with
any mutual fund investment, loss of money is a risk of investing. An investment in the Fund is not a
deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other
governmental agency. The risks associated with an investment in the Fund can increase during times of significant market volatility. 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, natural or environmental disasters, widespread disease or other public health
issues, war, military conflict, acts of terrorism or adverse investor sentiment generally. During a general
downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by the Fund will rise in value.
Debt Securities Risk. The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities and
higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s
distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to
make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the
value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit
event.
Changing Fixed Income Market Conditions Risk. Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed
income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of
the Fund’s investments and share price may decline. Changes in central bank policies could also
result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Money Market Fund Risk. Although money market funds generally seek to preserve the value of an investment at $1.00 per share, the Fund may
lose money by investing in money market funds. A money market fund's sponsor has no legal obligation to
provide financial support to the money market fund. The credit quality of a money market fund's holdings can
change rapidly in certain markets, and the default of a single holding could have an adverse impact on the
money market fund's share price. A money market fund's share price can also be negatively affected during periods of high redemption pressures, illiquid markets and/or significant market volatility.
Asset-Backed Securities Risk. 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, which could result in the Fund reinvesting these early
payments at lower interest rates, thereby reducing the Fund's income. Asset-backed securities also are subject to extension risk, which is the risk that a rise in interest rates could reduce the rate of prepayments, causing the price of the asset-backed securities and
the Fund’s share price to fall.
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 and such securities may be difficult to value and may have significant volatility.
Rule 144A Securities and Other Exempt Securities Risk. The market for Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded securities. Rule 144A and other exempt
securities, which are also known as privately issued securities, carry the risk that their liquidity may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Repurchase Agreement Risk. The Fund is subject to the risk that the counterparty may default on its obligation to repurchase the underlying
instruments collateralizing the repurchase agreement, which may cause the Fund to lose money. These risks
are magnified to the extent that a
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repurchase agreement is secured by securities other than cash or U.S. Government securities.
Yield Risk.
The Fund’s yield will vary as the short-term securities in its portfolio mature or are sold and the proceeds are reinvested in other securities. When interest rates are very low, the Fund’s expenses could absorb all or a portion of the
Fund’s income and yield. Additionally, inflation may outpace and diminish investment returns over time. Recent and potential future changes in monetary policy made by central banks and/or their governments may affect interest
rates.
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.
Foreign Securities Risk. The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in
enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire
investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S. companies, including
financial reporting requirements and auditing and accounting controls, and may therefore be more
susceptible to fraud or corruption. There may be less public information available about foreign companies
than U.S. companies, making it difficult to evaluate those foreign companies. Unless the Fund has hedged its
foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate
fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate
significantly over short periods of time. Currency hedging strategies, if used, are not always
successful.
Foreign Government Debt Risk. Investments in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those relating to
foreign securities or debt securities generally. The issuer of the debt or the governmental authorities
that control the repayment of the debt may be unable or unwilling to repay principal or interest when due
in accordance with the terms of such debt, and the Fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some governmental debtors have in the past been able to
reschedule or restructure their debt payments or declare moratoria on payments.
Financial Services Sector Risk. The Fund concentrates its investments in the financial services sector. The Fund may be susceptible to adverse economic or regulatory occurrences
affecting the financial services sector. Financial services companies are subject to extensive government
regulation and are disproportionately affected by unstable interest rates, volatility in the financial
markets, changes in domestic and foreign monetary policy, and changes in industry regulations, each of which could adversely affect the profitability of such companies. Financial services companies may also have concentrated portfolios, which
makes them especially vulnerable to unstable economic conditions.
Liquidity Risk. The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can
become illiquid during periods of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Municipal Securities Risk. The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional
amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest payments, repayment of principal and the Fund’s ability
to sell the security. Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes
in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on
municipal securities or otherwise adversely affect the current federal or state tax status of municipal
securities.
TBA Transactions Risk. TBA transactions involve the risk of loss if the securities received are less favorable than what was anticipated by
the Fund when entering into the TBA transaction, or if the counterparty fails to deliver the
securities.
Zero Coupon or Pay-In-Kind Securities Risk. The value, interest rates, and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to greater fluctuation than other types of securities. The higher yields and
interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than loans that periodically pay
interest.
When-Issued, Delayed Delivery and Forward Commitment
Risks. When-issued and delayed delivery transactions subject the Fund to market risk because the value or yield of a security at delivery may be more or less than the purchase price or yield generally
available when delivery occurs, and counterparty risk because the Fund relies on the buyer or seller, as the
case may be, to consummate the transaction. These transactions also 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, which increases the Fund’s overall investment exposure and, as a result, its volatility.
Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset
(each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use
of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise
perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in
the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under
adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions.
Derivatives may also be harder to value, less tax efficient and subject to changing government regulation
that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may
not provide the expected benefits, particularly during adverse market conditions.
Financial Markets Regulatory Risk. Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial
markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s
operations, universe of potential investment options, and return potential.
Management Risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or
potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
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losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may
adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Performance Information
The bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance of the Fund from year to year as of December 31.
The performance table compares the Fund's performance to that of a broad-based/style-specific securities
market benchmark and a peer group benchmark comprised of funds with investment objectives and strategies similar to those of the Fund (in that order). The Fund's
past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund performance reflects any applicable fee waivers and expense reimbursements. Performance returns would be lower without applicable fee waivers and expense
reimbursements.
Updated performance information is available on the
Fund's website at www.invesco.com/us.
Annual Total Returns
| Institutional Class |
Period Ended |
Returns |
| Year-to-date |
September 30, 2022 |
-0.64% |
| Best Quarter |
June 30, 2020 |
1.99% |
| Worst Quarter |
March 31, 2020 |
-0.60% |
Average Annual Total Returns (for the periods ended December 31, 2021)
| |
Inception Date |
1 Year |
5 Years |
Since
Inception |
| Class A |
|
|
|
|
| Return Before Taxes |
4/2/2018 |
-0.23% |
1.50%1
|
1.18%1
|
| Return After Taxes on Distributions |
|
-0.32 |
0.911 |
0.691 |
| Return After Taxes on Distributions and Sale of Fund Shares |
|
-0.12 |
0.891 |
0.691 |
| | ||||
| Class Y |
12/10/2019 |
-0.21 |
1.601 |
1.281 |
| | ||||
| Class R6 |
5/15/2020 |
-0.101 |
1.641 |
1.311 |
| | ||||
| ICE BofA US Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
|
0.05 |
1.16 |
0.84 |
| | ||||
| Lipper Ultra Short Obligations Funds Index |
|
0.11 |
1.59 |
1.31 |
| | ||||
1
Performance shown prior to the inception date is that of the Fund's Institutional Class
shares. The inception date of the Fund's Institutional Class shares is July 1, 2014. Although invested in
the same portfolio of securities, Class A, Class Y and Class R6 shares' returns of the Fund will be different from Institutional Class shares’ returns of the Fund as
they have different expenses.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts. After-tax returns are shown
for Class A shares only and after-tax returns for other classes will vary.
Management of the Fund
Investment Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
| Portfolio Managers |
Title |
Length of Service on the Fund |
| Laurie Brignac |
Portfolio Manager |
2014 |
| | ||
| Joseph Madrid |
Portfolio Manager |
2015 |
| | ||
| Marques Mercier |
Portfolio Manager |
2014 |
| | ||
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 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 and Y shares for fund accounts are as
follows:
| Type of Account |
Initial
Investment Per Fund |
Additional
Investments Per Fund |
| Asset or fee-based accounts managed by your financial adviser |
None |
None |
| | ||
| Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs |
None |
None |
| | ||
| IRAs and Coverdell ESAs if the new investor is purchasing shares through a systematic purchase plan |
$25 |
$25 |
| | ||
| All other types of accounts if the investor is purchasing shares through a systematic purchase plan |
50 |
50 |
| | ||
| IRAs and Coverdell ESAs |
250 |
25 |
| | ||
| All other accounts |
1,000 |
50 |
| | ||
With respect to Class 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 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, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plans or individual retirement account. Any distributions from a 401(k) plan or
individual retirement account may be taxed 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
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