Turn volatility into opportunity
Private Credit
DCO has an established track record of providing consistent income above what’s available in public markets.
Markets are evolving – so should your approach to credit
Adding DCO into a traditional fixed income portfolio has historically improved overall performance while reducing volatility.
A differentiated approach to asset allocation
Invesco’s Dynamic Credit Opportunity Fund is anchored in direct lending for stable return opportunities and high-income potential. Our industry-focused Direct Lending team specifically focuses on the core middle market (EBITDA12 of $20-75M), which gives us a competitive advantage when sourcing and underwriting opportunities. This allocation is complemented by exposure to private asset backed finance and enhanced by a dynamic approach to opportunistic credit, structured credit, and broadly syndicated loans. Across these private credit segments, we emphasize senior secured and floating rate as our primary investment entry point to mitigate risk. While many practitioners rely on historical indicators, Invesco incorporates forward-looking inputs from market experts into our asset allocation roadmap to properly estimate loss and volatility. Using this proprietary framework, the Fund deploys capital opportunistically to take advantage of market inefficiencies and relative value opportunities as the credit cycle evolves.
Characteristics of Invesco Dynamic Credit Opportunity Fund
Seeks enhanced income and total return potential by dynamically allocating across the full spectrum of liquid and illiquid private corporate credit. 10
Offers a ‘one stop shop’ for diversified 11 private credit exposure as well as a simplified subscription process, quarterly liquidity, and 1099 tax reporting via interval structure.
Features no performance fees to keep costs down and avoid hidden charges.
Enhanced income 8 and total return potential 9
Streamlined investor experience
Simple fee structure
professionals
track record
$188+bn
35+
assets
Unlocking differentiated access to private credit
Introducing DCO
Full-cycle private credit, powered by market-leading platforms
Scott Baskind, Head of Global Private Credit and CIO of Invesco’s Global Private Credit platform, delves into his team’s proprietary DCO framework and enhancements they’re making to the Fund.
Inside the investment process
years 7
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency The information on this site does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions. Diversification does not guarantee a profit or eliminate a loss. The opinions expressed are those of the private credit team, are based on current market conditions, and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. There is no guarantee these strategies will be able to meet their objectives. Past performance cannot guarantee future comparable results. About risk The Fund is a closed-end management investment company that is operated as an interval fund, and should be considered a speculative, long-term investment of limited liquidity that entails substantial risks, and you should only invest in the Fund if you can sustain a complete loss of your investment. As a result, you may receive little or no return on your investment or may lose part or all of your investment. The Fund is suitable only for investors who can bear the risks associated with the Fund’s limited liquidity. The Fund does not currently intend to list its Shares for trading on any national securities exchange. The Shares are, therefore, not readily marketable and no market is expected to develop. Liquidity for the Shares will be provided only through quarterly repurchase offers between 5% and 25% of the Shares at NAV, and there’s no guarantee that you will be able to sell all of the Shares you desire to sell in the repurchase offer. As a result, you should consider an investment in the Fund to be of limited liquidity. There is no assurance that annual distributions paid by the Fund will be maintained at the targeted level or that dividends will be paid at all. Although the Fund does not intend to use offering proceeds to fund distributions, the Fund’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to Shareholders through distributions will be distributed after payment of fees and expenses. Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested. There are risks associated with borrowing or issuing preferred shares, including that the costs of the financial leverage exceed the income from investments made with such leverage, the higher volatility of the net asset value of the common shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. Use of leverage also may impair the fund’s ability to maintain its qualification for federal income taxes as a regulated investment company. The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating. Junk bonds involve a greater risk of default or price changes due to changes in the issuer’s credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods. Leverage created from borrowing or certain types of transactions or instruments may impair the fund’s liquidity, cause it to liquidate positions at an unfavorable time or lose more than it invested, increase volatility or otherwise not achieve its intended objective. The fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. While there is no restriction on transferring the shares, the fund does not intend to list the shares for trading on any national securities exchange. There is no secondary trading market for shares. An investment in the shares is illiquid. There is no guarantee that you will be able to sell all of the shares that you desire to sell in any repurchase offer by the fund. There is less readily available, reliable information about most senior loans than there is for many other types of securities. In addition, there is no minimum rating or other independent evaluation of a borrower or its securities limiting the fund's investments, and the adviser relies primarily on its own evaluation of borrower credit quality rather than on any available independent sources. Senior Loans, like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a Senior Loan will result in a reduction in income to the Fund, a reduction in the value of the Senior Loan and a potential decrease in the Fund’s net asset value. The risk of default will increase in the event of an economic downturn or a substantial increase in interest rates. The Fund may invest in structured notes including CDOs, CBOs, CLOs, structured notes, credit-linked notes and other types of structured products. Holders of structured products bear risks of the underlying investments, index or reference obligation and are subject to counterparty risk. The fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the fund. Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund visit invesco.com/us for the prospectus/summary prospectus. Invesco Distributors, Inc. is the U.S. distributor for Invesco's retail products and private placements. Invesco is not affiliated with Citywire. Standard deviation: Standard deviation measures the volatility or risk of an investment by quantifying how much its returns deviate from the average return, with higher deviations indicating greater risk. Sharpe ratio: A measure of an investment’s risk-adjusted performance, calculated by comparing its return to that of a risk-free asset. Correlation: A statistic that measures the degree to which two variables move in relation to each other. Bloomberg US Aggregate Bond Index: The US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, fixed rate agency MBS, ABS and CMBS (agency and non-agency). An investment cannot be made directly into an index. Bloomberg US High Yield Bond Index: The Bloomberg US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. S&P UBS Leveraged Loan Index: The S&P UBS Leveraged Loan Index tracks the performance of U.S. dollar denominated senior floating rate bank loans. Cliffwater Direct Lending Index (CDLI): The Cliffwater Direct Lending Index (CDLI) seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies (BDCs), including both exchange-traded and unlisted BDCs. Bloomberg US CMBS Investment Grade Index: The Bloomberg US CMBS Investment Grade Index measures the market of US Agency and US Non-Agency conduit and fusion CMBS deals with a minimum current deal size of $300mn. Bloomberg U.S. Treasury Unhedged Index: The Bloomberg U.S. Treasury Unhedged Index which measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. Treasury bills are excluded by the maturity constraint but are part of a separate Short Treasury Index. STRIPS are excluded from the index because their inclusion would result in double-counting. Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2): The Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2) which measures total return and its components for many forms of high-yield CRE debt, such as high-yield commercial mortgage debt performance for high-yield loans, such as mezzanine loans, preferred equity and "B" notes. Bloomberg U.S. Corporate Value Unhedged USD Index: The Bloomberg U.S. Corporate Value Unhedged USD Index which measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. Morningstar LSTA US Leveraged Loan 100 Index: The Morningstar LSTA US Leveraged Loan 100 Index is designed to measure the performance of the 100 largest facilities in the US leveraged loan market. JP Morgan BB CLOIE index: The J.P. Morgan Collateralized Loan Obligation Index (CLOIE) is the first total return benchmark for broadly-syndicated arbitrage US CLO debt. Gilberto-Levy 2 Commercial Mortgage index: The Gilberto-Levy 2 Commercial Mortgage index measures total return and its components for many forms of high-yield CRE debt, such as high-yield commercial mortgage debt performance for high-yield loans, such as mezzanine loans, preferred equity and "B" notes. NCREIF Property Index (“NPI”): NPI is the broadest measure of private real estate index returns. The NPI is published by the National Council of Real Estate Investment Fiduciaries and is a quarterly, composite total return (based on appraisal values) for private commercial real estate properties held for investment purposes including fund expenses but excluding leverage and management and advisory fees. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt institutio nal investors and held in a fiduciary environment. NCREIF data reflects the returns of a blended portfolio of institutional quality real estate and does not reflect the use of leverage or the impact of management and advisory fees. Mstar bank loan fund median: Bank-loan funds and ETFs invest in floating-rate bank loans and other floating-rate securities instead of bonds. In exchange for their credit risk compared with corporate bonds, these loans offer higher interest rates that typically float above a common short-term benchmark. Mstar HY bond fund median: High-yield bond funds concentrate on lower-quality bonds, which are riskier than those of higher-quality companies. These portfolios generally offer higher yields than other types of portfolios, but they are also more vulnerable to economic and credit risk. Mstar core bond fund median: Core bond funds invest primarily in investment-grade US fixed-income issues including government, corporate, and securitized debt and hold less than 5% in below-investment-grade exposures.
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1 Source: Invesco, as of January 31, 2025. 2 Total returns annualized: Direct Lending, 9.55; Private Real Estate Equity, 3.17; Private Real Estate Debt: 6.65; Senior Loans, 5.86; US High Yield, 4.21; CMBS, 0.95; Corporate Bonds, 0.30; Investment Grade Bonds, -0.33 and Treasuries, -0.68. Sources: Invesco Real Estate using data from the RE Credit - Gilberto-Levy 2 Commercial Mortgage Index, Direct Lending – Cliffwater Direct Lending Index, Investment Grade Bonds –Bloomberg US Aggregate Bond Index, High Yield – Bloomberg US Corporate High Yield Index , Senior Loans – Morningstar LSTA Leveraged Loan 100 Index, Treasuries – Bloomberg US Treasury Total Return Unhedged Index, Corporate Bonds – Bloomberg US Corporate Total Return Value Unhedged USD Index, CMBS – Bloomberg CMBS IG Total Return Index Value. Trailing 5-years of data, last 5 years of quarterly returns annualized 2020Q1-2024Q4, updated semi-annually. Past performance is not indicative of future results. An investment cannot be made directly into an index. 3 Standard deviation annualized: Direct Lending, 3.70; Private Real Estate Equity, 5.49; Senior Loans, 8.52; US High Yield, 10.72; CMBS, 5.41; Corporate Bonds, 9.49; Investment Grade Bonds, 6.81 and Treasuries, 7.10. Source: Invesco Real Estate using data from the Direct Lending– Cliffwater Direct Lending Index, Investment Grade Bonds – Bloomberg U.S. Aggregate Total Return Index, High Yield – Bloomberg US Corporate High Yield Index , Senior Loans – Morningstar LSTA Leveraged Loan 100 Index, Treasuries – Bloomberg U.S. Treasury Total Return Unhedged Index, Corporate Bonds – Bloomberg U.S. Corporate Total Return Value Unhedged USD Index, CMBS – Bloomberg CMBS Total Return Index Value, Private RE – NCREIF Property Index. Trailing 5-years of data, last 5 years of quarterly returns annualized 2020Q1-2024Q4, updated semi-annually. Past performance is not indicative of future results. An investment cannot be made directly into an index. 4 Direct lending correlation to other asset classes: Private Real Estate Debt, 0.19; Private Real Estate Equity, -0.07; US High Yield, 0.79; CMBS, 0.21; Corporate Bonds, 0.39; Investment Grade Bonds, -0.02 and Treasuries, -0.37. Trailing 5-years of data, last 5 years of quarterly returns annualized 2020Q1-2024Q4, updated semi-annually. Source: Invesco Real Estate using data from the RE Credit - Gilberto-Levy 2 Commercial Mortgage Index, Direct Lending– Cliffwater Direct Lending Index, Investment Grade Bonds – Bloomberg U.S. Aggregate Total Return Index, High Yield – Bloomberg US Corporate High Yield Index , Treasuries – Bloomberg U.S. Treasury Total Return Unhedged Index, Corporate Bonds – Bloomberg U.S. Corporate Total Return Value Unhedged USD Index, CMBS – Bloomberg CMBS Total Return Index Value, Private RE – NCREIF Property Index. Diversification does not guarantee a profit or eliminate the risk of loss. An investment cannot be made directly into an index. 5 Source: Invesco and Barings LLC, as of June 30, 2025. $188+ billion indicates combined assets under management across Invesco and Barings LLC’s Private Credit Platforms. 6 Source: Invesco and Barings LLC, as of June 30, 2025. 230+ indicates total number of professionals across Invesco and Barings LLC’s Private Credit Platforms. 7 Source: Invesco and Barings LLC, as of June 30, 2025. 35+ years indicates track record for both Invesco and Barings LLC’s Private Credit Platforms. 8 Trailing 12 month Distribution Yield (%): Invesco Dynamic Credit Opportunity Fund (Class AX), 11.24; Mstar Bank Loan Fund Median, 9.37; Mstar HY Bond Fund Median, 6.85 and Mstar Core Bond Fund Median, 4.71. Source: Morningstar and Bloomberg, as of 12/31/2024. Trailing 12-month yields are calculated using the last 12 months of dividends for each time period. Past performance is not indicative of future results. An investment cannot be made directly in an index 9 Total return potential is driven by dynamic Opportunistic credit and Structured credit allocations. Opportunistic credit asset class has average return of 29.6% 12 months after trough. Structured credit asset class has average return of 32.9% average return 12 months after trough. Source: S&P UBS Leveraged Loan Index (CCC/Split CCC basket) and JP Morgan BB CLOIE index (BB CLO Notes), as of 12/31/2024. Opportunistic credit is represented by the S&P UBS Leveraged Loan Index. Structured credit is represented by the JP Morgan BB CLOIE index. CLO BB returns based on 12 month period after 2/29/2016,12/31/2018,3/31/2020, and 9/30/22. Loan CCC/Split CCC returns based on 12 month period after (9/30/2011, 2/29/16, 3/31/30, 12/31/2022) Past performance is not indicative of future results. An investment cannot be made directly in an index. 10 Fund objective: Seeks to provide a high level of current income and capital appreciation throughout the cycle by dynamically allocating across private credit including Direct Lending, Opportunistic Credit, Syndicated Loans, and Structured Credit. 11 Diversification does not guarantee a profit or eliminate the risk of loss. 12 EBITDA is earnings before interest, taxes, depreciation, or amortization.
Discover Invesco’s Dynamic Credit Opportunity Fund: A full-cycle approach to private credit, backed by 35+ years of investment expertise.1
Private credit has emerged as one of the fastest-growing asset classes, driven by a reduction in supply from traditional lenders and attractive levels of yield. As elevated inflation and treasury rates challenge traditional fixed income, private credit offers an increasingly compelling complement due to its potential for robust returns,2 diversification,3 and lower volatility.4 However, not all private credit strategies are created equally. In times of heightened uncertainty, investors need a strategy that is flexible enough to adapt to market fluctuations and capitalize on relative value opportunities. Full-cycle private credit solutions are designed to help. These solutions dynamically allocate across the private credit spectrum to help optimize risk adjusted returns as market conditions evolve.
Combined Platform at a glance
Invesco Private Credit and Barings LLC are leading, long-tenured private credit managers. Through our partnership, we aim to expand clients’ access to private credit and help address the need for income-oriented solutions in today’s rapidly evolving market. Our combined capabilities include direct lending, opportunistic credit, asset backed finance, structured credit, and broadly syndicated loans, which enable us to take advantage of opportunities throughout the cycle.
230+
6
3
2
1
Investment professionals with an average of 30+ years’ experience.8 Differentiated approach through structural alignment and collaboration across Invesco’s private credit platform. Top trading counterparty status, resulting in ‘early looks’ at new transactions as well as preferred allocations in exchange for feedback.
Back to start: Market presence and scale
Extensive resources and expertise
Disciplined, fundamental research designed to manage risk and identify relative value across private credit. Customized proprietary tools, supporting our quantitative analytical framework and predictive credit research. Time-tested process, refined through decades of managing institutional portfolios.
Next: Extensive resources and expertise
Proven credit process and proprietary tools
Broad exposure to industry-leading private credit investments through Invesco and Barings’ complementary capabilities. Deep product innovation expertise, leveraging the extensive scale and global resources of both firms. Decades of combined experience creating unique products for both retail investors and complex institutional portfolios.
Delivering our combined strengths
Invesco and Barings’ strategic partnership
Complemented by expertise from Barings LLC, Invesco’s Dynamic Credit Opportunity Fund (DCO) leveraged its integrated private credit platform to help advisors deliver value and differentiated outcomes to clients. The Fund dynamically allocates across the private credit spectrum to capitalize on temporary or broad dislocations. Through its focus on consistent income, DCO is designed to complement traditional bond and equity exposures while diversifying existing private market allocations.
Explore product details
DCO’s proven track record
DCO performance
Benefits of a full-cycle approach
Adding a full-cycle private credit solution into a traditional fixed income portfolio may improve overall performance while reducing volatility.
By leaning on managers to tactically adjust allocations, full-cycle solutions can capitalize on dislocations whenever and wherever they arise.
Learn more
Enhanced income potential Trailing 12m Distribution Yield
Enhanced outcomes
Allocation flexibility
Historically improved risk adjusted performance
5
- GDP +
For illustrative purposes only.
Higher exposure to opportunistic credit to capture spread tightening Default rates and CCCs stabilize Credit spreads tighten
Early Cycle
Target higher yielding assets that justify overweight positions Exposure to opportunistic begins to moderate Default rates bottom Credit spreads remain tight
Mid Cycle
Risk adjusted return for opportunistic credit is less attractive Portfolio tactically shifts into more ‘defensive’ positioning Credit spreads begin to widen
Late Cycle
Portfolio defensively positioned during the first half of recession Rebalances towards opportunistic credit as forecasted volatility falls Tactical shift towards end of the cycle is critical to capture early cycle tailwinds
Recession
Direct Lending (40-60%) Syndicated Loans (20-40%) Opportunistic Credit (10-30%) Structured Credit (0-10%) Asset Backed Finance (0-10%)
Illustrative Example – Dynamic Allocation Across Economic Cycle
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions and changes in net asset value (NAV). Investment return and principal value will vary, and you may have a gain or a loss when you sell shares. Returns less than one year are cumulative; all others are annualized. Class R6 shares have no sales charge; therefore, performance is at NAV. Performance shown prior to the inception date of Class R6 shares is that of Class AX shares and includes the 12b-1 fees applicable to Class AX shares. Class A shares at NAV and Class Y shares have no sales charge; therefore, performance is at NAV. Performance shown prior to the inception date of Class A shares is that of Class AX shares and includes the 12b-1 fees applicable to Class AX shares. Performance shown prior to the inception date of Class Y shares is that of Class AX shares and includes the 12b-1 fees applicable to Class AX shares. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. Index returns do not reflect any fees, expenses, or sales charges. Class AX shares of the Fund are closed to new investors. Class A shares at NAV and Class Y shares are available only to certain investors. Class R6 shares are primarily intended for retirement plans that meet certain standards and for institutional investors. See the prospectus for more information.
4
Direct Lending (40-60%) Syndicated Loans (20-40%) Opportunistic Credit (10-30%) Structured Credit (0-10%)
From niche to mainstream
Active ETFs
Leading the way in tax-free income solutions
Municipal Bonds
In this series
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions. Name/Ticker/Index Change Disclosures IROC: Effective after close of business February 20, 2025, The Fund will invest at least 75% of its total assets in low-to medium-quality municipal securities. The Fund’s name will change to “Invesco Rochester High Yield Municipal ETF.” As a result of this change, the Fund will also change its ticker to "IROC". About Risk There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund. ETF Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. show less All fixed income securities are subject to two types of risk: credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will be unable to make interest payments and/ or repay the principal on its debt. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest. The funds may invest in municipal securities issued by entities having similar characteristics. The issuers may be located in the same geographic area or may pay their interest obligations from revenue of similar projects. This may make the fund’s investments more susceptible to similar social, economic, political or regulatory occurrences. As the similarity in issuers increases, the potential for fluctuation in the fund’s net asset value also increases High yield bonds, or junk bonds, involve a greater risk of default or price changes due to changes in the issuer’s credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods. Market prices of municipal securities with intermediate lives generally fluctuate more in response to changes in interest rates than do market prices of municipal securities with shorter lives but generally fluctuate less than market prices of municipal securities with longer lives. The funds may invest in bonds with short- or intermediate-term (five years or less) maturity which may have additional risks, including interest rate changes over the life of the bond. The average maturity of the fund's investments will affect the volatility of the fund's share price. The income you receive from the fund is based primarily on prevailing interest rates, which can vary widely over the short and long term. If interest rates drop, your income may drop as well. The funds’ distributions primarily are exempt from regular federal income tax. A portion of these distributions, however, may be subject to the federal alternative minimum tax and state and local taxes. The fund may also make distributions that are taxable to you as ordinary income or capital gains. Based on a Master Settlement Agreement (“MSA”) with 46 states and six other US jurisdictions, large US tobacco manufacturers have agreed to make annual payments to government entities in exchange for the release of all litigation claims. Several states have sold bonds backed by those future payments, including (i) bonds that make payments only from a state’s interest in the MSA and (ii) bonds that make payments from both the MSA revenue and from an “appropriation pledge” by the state which requires the state to pass a specific periodic appropriation to make the payments and is generally not an unconditional guarantee of payment by a state. Settlement payments are based on factors, including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. Payments could be reduced if consumption decreases, if market share is lost to non-MSA manufacturers, or if there is a negative outcome in litigation regarding the MSA, including challenges by participating tobacco manufacturers regarding the amount of annual payments owed under the MSA A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. NR indicates the debtor was not rated and should not be interpreted as indicating low quality. For more information on rating methodologies, please visit the following NRSRO websites: www.standardandpoors.com and select ‘Understanding Credit Ratings’ under Rating Resources ‘About Ratings’ on the homepage.; https://ratings.moodys.io/ratings and select ‘Understanding Ratings’ on the homepage.; www.fitchratings.com and select ‘Ratings Definitions Criteria’ under ‘Resources’ on the homepage. Then select ‘Rating Definitions’ under ‘Resources’ on the ‘Contents’ menu. All information is sourced from Invesco, unless otherwise stated. Institutional Separate Accounts and Separately Managed Accounts are offered by affiliated investment advisers, which provide investment advisory services and do not sell securities. These firms, like Invesco Distributors, Inc., are indirect, wholly owned subsidiaries of Invesco Ltd. Some vehicles mentioned are offered via affiliates of Invesco Distributors, Inc. Not all of the capabilities and delivery vehicles listed are available on all platforms. Please consult your Invesco representative for more information. Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations. Morningstar Source: ©2025 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. For factsheets that display Morningstar Star Ratings; Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10- year rating metrics, as applicable, excluding sales charges and including fees and expenses. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings are as of the most recent quarter end and are subject to change every month. The top 10% of fund in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings for other share classes may differ due to different performance characteristics. Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus. Invesco Distributors, Inc. is the U.S. distributor for Invesco's retail products and private placements. Invesco is not affiliated with Citywire. Yield to worst is the measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting. Bloomberg Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market. Bloomberg Municipal High Yield Bond Index is generally representative of bonds that are non-investment grade, unrated or rated below Ba1. Bloomberg Taxable Municipal Index measures the US municipal taxable investment grade bond market. Bloomberg Municipal Bond AAA Index is an unmanaged index of the AAA-rated municipal bond market. Bloomberg Municipal Bond BBB Index is an unmanaged index of the BBB-rated municipal bond market. Bloomberg Municipal Bond AA Index is an unmanaged index of the AA-rated municipal bond market. Bloomberg Municipal Bond A Index is an unmanaged index of the A-rated municipal bond market. Bloomberg Municipal Bond BBB Index is an unmanaged index of the BBB-rated municipal bond market. Bloomberg US Corporate Index is an unmanaged index considered representative of the fixed-rate taxable corporate bond market. Bloomberg US Corporate Bond AAA Index is an unmanaged index considered representative of AAA-rated fixed-rate taxable corporate bond market. Bloomberg US Corporate Bond AA Index is an unmanaged index considered representative of AA-rated fixed-rate taxable corporate bond market. Bloomberg US Corporate Bond A Index is an unmanaged index considered representative of A-rated fixed-rate taxable corporate bond market. Bloomberg US Corporate Bond BBB Index is an unmanaged index considered representative of BBB-rated fixed-rate taxable corporate bond market. Bloomberg US Corporate High Yield Index is an unmanaged index considered representative of fixed-rate, noninvestment-grade taxable corporate bond market. US Treasury is represented by the public obligations of the US Treasury. Treasurys are backed by the full faith and credit of the US government as to the timely payment of principal and interest, while legislative or economic conditions could affect a municipal securities issuer’s ability to make payments of principal or interest.
1 Source: Bloomberg Municipal Bond Index as of April 15, 2025. 2 Municipal bonds have a long history of low defaults compared to corporate bonds, because they fund essential American services. Credit fundamentals have been strong for the past several years, and they remain so. In 2024, according to S&P rating changes, we saw two credit rating upgrades for each rating downgrade. In 2023, there were 4 ratings upgrades for each downgrade. Source: S&P rating changes: 747 credit ratings upgraded versus 345 downgraded over twelve months ending August 31, 2024. 3 Source: Invesco as of Dec. 31, 2024. 4 Source: Invesco as of March 31, 2025. 5 LSEG Lipper Fund Awards. © 2025 LSEG Lipper. The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, their accuracy is not guaranteed by LSEG Lipper. Invesco California Municipal Fund Y shares were named best in-class among 29 California Municipal Debt Funds, for 10-year period ending November 30, 2024. Invesco AMT-Free Municipal Income Fund Y shares were named best in-class among 70 General & Insured Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Rochester® Municipal Opportunities Fund Y shares were named best in-class among 38 High Yield Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco New Jersey Municipal Fund R6 shares were named best in-class among 14 New Jersey Municipal Debt Funds for the 5-year period ending November 30, 2024. Invesco Rochester® New York Municipals Fund R6 shares were named best in-class among 24 New York Municipal Debt Funds for the 5-year period ending November 30, 2024. Invesco Rochester® New York Municipals Fund Y shares were named best in-class among 23 New York Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Pennsylvania Municipal Fund Y shares were named best in-class among 15 Pennsylvania Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Short Term Municipal Fund Y shares were named best in-class among 28 Short Municipal Debt Funds for the 10-year period ending November 30, 2024. 6 Invesco has been managing municipal bond assets on behalf of clients for 49+ years. 7 Source: Simfund as of June 30, 2025. 8 Source: Invesco as of June 30, 2025. 9 Source: Invesco as of June 30, 2025. 10 Source: Smith’s Research & Gradings, awarded December 4, 2024. Smith’s Research & Gradings was founded in 1992 by Terence Smith to provide independent third-party research and credit analytics for institutional investors. Smith’s has become a bellwether research company, often predicting significant trends and spotlighting controversial subjects sometimes months and years before they come to light elsewhere. Smith’s analysis is an indispensable part of Wall Street and the world’s capital markets. Methodology: Each year, nominations to the ballot are made by a committee of portfolio managers from thirteen investment firms. The final ballot is sent out to 1,000 institutional investors for voting. The size of the institutions ranged from some of the largest, with $100’s of billions, to small institutions with only a couple of funds and less than $100 million under management. Only institutional investors are allowed to vote in Smith’s All-Star program — they are in a position to see the work done across the entire spectrum of analysis. Each institutional investor is only allowed to vote for one analyst in a sector — every vote is for the first-team analyst. Overall, the ballot provided well deserved recognition to more than 330 municipal analysts at more than 75 firms in 27 different categories. Invesco was ranked 3rd in 2022, 1st in 2023, and 2nd in 2024. Smith's All-Star Analysts Program includes a team category, which recognizes the contributions by all members of the analytical group. It is important to understand that voters are not choosing First, Second or Third teams — all votes are cast for an analyst to be on the First Team. 11 Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2025, Class Y shares received 5 for the overall, 4 for the three years, 5 for the five years and 5 for the 10 years. The fund was rated among 179, 179, 173 and 127 funds within the High Yield Muni Category for the overall period, three, five and 10 years, respectively. 12 Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2025, Class Y shares received 4 for the overall, 3 for the three years, 4 for the five years and 5 for the 10 years. The fund was rated among 179, 179, 173 and 127 funds within the High Yield Muni Category for the overall period, three, five and 10 years, respectively. 13 Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2025, Class Y shares received 5 for the overall, 4 for the three years, 5 for the five years and 5 for the 10 years. The fund was rated among 215, 215, 198 and 155 funds within the Muni National Short Category for the overall period, three, five and 10 years, respectively. 14 Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2025, Class Y shares received 5 for the overall, 4 for the three years, 5 for the five years and 5 for the 10 years. The fund was rated among 215, 215, 198 and 155 funds within the Muni National Short Category for the overall period, three, five and 10 years, respectively.
Invesco Rochester® Municipal Opportunities Fund
ORNYX
Morningstar rating: 11
Seeks to provide highly attractive levels of tax-free income for long-term investors by opportunistically purchasing high yield and investment grade municipal bonds. Explore product details
Invesco High Yield Municipal Fund
ACTDX
Morningstar rating: 12
Seeks to provide federal tax-exempt current income and taxable capital appreciation by investing in a portfolio of higher-yielding municipal bonds. Explore product details
Invesco Short Term Municipal Fund
ORSYX
Morningstar rating: 13
Seeks to provide capital preservation and tax-free income by purchasing short-term investment grade bonds. Explore product details
Invesco Limited Term Municipal Income Fund
ATFYX
Morningstar rating: 14
Seeks to provide tax-exempt income while limiting rate risk by purchasing short- to intermediate-term investment grade bonds. Explore product details
Invesco Rochester High Yield Municipal ETF
IROC
IROC aims to provide federally tax-exempt income by investing at least 75% of total assets in low- to medium-quality municipal securities. Effective July 1, 2025 through June 30, 2026, Invesco has voluntarily waived 100% of its management fee. Explore product details
Invesco Intermediate Municipal ETF
INTM
Launched in July 2025, INTM seeks current income exempt from federal income tax by investing at least 80% of assets in investment grade municipal securities, with a focus on high credit quality and intermediate duration. Explore product details
Featured solutions
Mutual funds with an established track record
Innovation through active ETFs
From short-term, high-grade portfolios to long-term, high-yield strategies, Invesco offers a comprehensive suite of tax-exempt solutions, designed to meet a wide range of needs. Our municipal bond strategies span the full risk and maturity spectrum – across geographies and with no style drift – and are available through mutual funds, ETFs, and separately managed accounts.
Delivering our
collective strength
See more on expense ratios per the current prospectus
Invesco’s municipal investment process has been fine-tuned across multiple market cycles. Our time-tested approach is grounded in proprietary fundamental research and risk management. This approach is supported by an experienced investment team with expertise spanning the municipal universe. Through rigorous bottom-up analysis, real-time market insight, and experience-based knowledge, our team seeks to uncover the best risk/reward opportunities to create a performance advantage.
Our approach
One of the most seasoned municipal credit research teams, with 24 dedicated analysts averaging 19+ years’ experience.9 Rigorous hands-on research analysis for every credit in our portfolios, including 100-200 annual site visits and management conference calls. Named top 3 municipal credit research teams for three consecutive years by Smith's Research & Gradings.10
Award-winning credit research
Industry’s 2nd largest high yield municipal bond manager and 5th largest municipal bond manager by assets.7 Access to 120+ national and regional municipal bond dealers,8 enabling access to preferred market opportunities. Superior execution through ability to aggregate trades across multiple funds and secure lower institutional pricing.
Market leaders
What sets us apart
years6
49+
8
LSEG Lipper awards
$61.1bn
At a glance
Now more than ever, investing in munis requires in-depth analysis and expertise. With more than 50,000 government and non-government obligors,3 the municipal bond market has continued to grow in complexity. Amid ongoing volatility and policy uncertainty, navigating this landscape demands a deep and experienced investment team backed by rigorous credit research to help capitalize on market inefficiencies. As one of the largest municipal bond managers, Invesco combines scale and experience to identify the best opportunities for clients and help deliver better outcomes.
Navigating the complexities of the muni market
Mark Paris, CIO and Head of Municipals at Invesco, shares why munis offer a compelling entry point today and how his team is positioning for the opportunity.
Capitalize on the income opportunity
The municipal market is presenting a rare and compelling opportunity. After two years of aggressive interest rate hikes, yields are near 15-year highs.1 Backed by strong fundamentals and historical resilience,2 muni bonds are offering an attractive level of tax-exempt income on an absolute and relative basis at a time when uncertainty looms. While we wait for the Fed to lower rates, which should help muni performance, we believe investors who lock in yields now may be paid handsome income for waiting, which we haven’t seen in years.
Getting paid to wait?
As investors seek stability and income amid uncertain market conditions, learn how Invesco’s municipal bond expertise can help.
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund. Investors should be aware of the material differences between mutual funds and ETFs. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. Investors should talk with their financial professional regarding their situation before investing. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions. Not all products, materials or services available at all firms. Financial professionals, please contact your home office. The opinions expressed are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties, and assumptions; there can be no assurance that actual results will not differ materially from expectations. Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their financial professionals for a prospectus/summary prospectus or visit invesco.com/fundprospectus Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares. Citywire and Invesco are not affiliated. NA4824532 10/25 Invesco Distributors, Inc.
1 Source: Invesco, as of 6/30/25. 2 Most ETFs disclose their full portfolio holdings daily. Semi-transparent active ETFs provide transparency on a less frequent basis than daily, as intended by the strategy. 3 Sources: Bloomberg, as of 6/30/25. 4 Source: Morningstar Direct, Bloomberg 6/30/25. 5 Source: Invesco, Bloomberg L.P., as of 6/30/2025. 6 Source: Invesco, AUM as of 6/30/2025 7 Number of ETFs and ETPs across fixed income, equities, commodities and alternatives 8 Invesco’s first active ETF was launched in 2008 9 Source: Invesco and Bloomberg L.P. as of 12/31/24. Invesco AUM was $632.23B as of 12/31/24.
More of this series
GTO – Total Return Bond VRIG – Variable Rate Inv. Grade
QQA – US Equity Income Advantage RSPA – US Equity Income Advantage EFAA – Int’l Equity Income Advantage QBIG – QQQ Innovation Suite
PIPE – SteelPath MLP & Energy Infrastructure IMF – Managed Futures CSTK – Comstock Contrarian QQHG – QQQ Hedged Advantage MTRA – International Growth Focus IQSZ – Global Equity Net Zero** GTOC – U.S. Core Total Return Bond** INTM (Intermediate Muni) – IG Intermediate Muni**
IHYF – HY Bond Factor IVRA – Real Assets ESG ICLO – AAA CLO Float. Rt. Note IROC – Muni Strat. Inc HIYS – HY Select GTOS – Sh. Dur. Bond EVMT – Electric Vehicles Metals Comm PDBA – Agg Comm. Strat
GSY – Ultra Short Duration Note: This fund launched as passive but converted to active PSR – US Real Estate Fund PHDG – S&P 500 Downside Hedged ETF PDBC – Op Yield Div. Comm. Strat. No K-1
AUM ($M)
610.6
65.8
1,599.6
10,288.6
12,254.8
5,151.0
2013
2016
2019
2022
2025
Launch
2008
2010
* IVZ launched first active equity ETFs – Alpha Multi-Cap and AlphaQ. ** Please note IQSZ/GTOC/INTM all launched during July 2025, hence total AUM is not counted towards the sum as of 6/30/2025.
Flagship ETF Strategies Debut
Introduction of Income Advantage ETFs
Strategic Expansion of Active ETFs in Equity, Real Assets, and Fixed Income
Active Investing Moves into Alternatives and Credit
IVZ launches first active equity ETFs *
How our lineup has changed over the years 5
As a leading ETF and ETP provider, Invesco has been delivering innovative solutions to investors for more than two decades. First launched in 2008, Invesco’s suite of US-listed active ETFs empowers investors to access differentiated exposures, new market areas, and institutional-grade strategies through the efficiency, transparency, and liquidity of ETFs. Our US-listed active ETFs are powered by our expertise in portfolio construction and systematic investing. Across the spectrum of active strategies and implementation techniques, our ETFs and ETPs deliver innovative ways for investors to seek outcomes such as generating income, mitigating downside risk, and outperforming market indexes.
Invesco: A pioneer in active ETFs
2008-2015
2016-2019
2020-2023
2024
Invesco Total Return Bond ETF
GTO
Invesco Ultra Short Duration ETF
GSY
Invesco AAA CLO Floating Rate Note ETF
ICLO
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF
PDBC
Invesco Comstock Contrarian Equity ETF
CSTK
Invesco Variable Rate Investment Grade ETF
VRIG
17+
years 8
26
7
funds
$12.2bn
Invesco’s US-listed active ETF and ETP lineup
$
bn
632
US ETF AUM
+
225
US-domiciled ETFs
150
Investment professionals globally
52
US ETFs with AUM of $1bn+
Who we are 9 A leading innovator in a growing market
Find out more about our ETF strategies and ETF performance
#f6f6f6
Shaping the future
Redefining possibilities
Leading the industry
Our pioneering efforts have laid the foundation for many of the advancements that continue to drive the industry forward today
We’ve challenged conventional thinking, expanding the definition of what an ETF can be through bold and forward-looking strategies
Invesco has consistently been at the forefront of ETF innovation, shaping the evolution of the space from its earliest days
Partner with an ETF leader
At Invesco, we partner with institutions to help them find the right solutions leveraging the fullest extent of our capabilities.
Committed to continuous innovation for clients, Invesco has expanded its active ETF lineup across asset classes, giving investors more ways to access our expertise in security selection, portfolio construction, and systematic investing through the efficiency of ETFs. Our product development process is centered on client needs and long-term viability. We consider whether a strategy can truly help investors achieve their goals and whether the product is feasible to build, scale, and sustain. The goal is to deliver differentiated solutions that stand out in the market – while avoiding short-lived fund cycles and ensuring every launch is purposeful and aligned with investor outcomes.
We combine systematic strategies with human insight to deliver dynamic investment solutions. We offer a range of implementation techniques tailored to various investment goals. Backed by Invesco’s legacy as a leading global ETF provider with a history of rethinking possibilities.
Innovative approach
Access new market areas and strengthen portfolios through actively managed ETFs. Benefit from the liquidity, cost-effectiveness, and transparency inherent in the ETF structure. Designed to help investors seek outperformance, generate income, and manage risk.
Investor outcomes
Invesco
Empowering portfolios with active ETFs
John Feyerer, Head of U.S. Product Development, explains how Invesco leverages decades of ETF leadership and cutting-edge technology to better meet investors’ needs.
Inside Invesco: Building dynamic portfolios with active ETFs
The rising demand for flexibility
Investors are increasingly seeking tailored solutions that align with their individual goals, driving demand for a wider choice of strategies and investment vehicles. Flexibility is critical as portfolios need to adapt quickly to shifting market conditions without sacrificing long-term objectives. At the same time, performance remains a central priority, with investors seeking solutions that not only provide adaptability but can also deliver strong, consistent results. Given these changing market dynamics and investor demand for choice, active ETFs can play an important role in a portfolio – providing diversification benefits with the potential to enhance passive core performance. And active ETFs continue to gain share of flows – a trend that looks to continue.
ETF Launches 3 2018-2024 Since 2023, over 3 out of 4 ETFs launched were active
Active Passive Active % of Total
ETF Net Flows 3 2018-2024*
Passive Active Active ($B)
*Flow data includes assets converted from mutual funds.
Current AUM 4 ($T)
Passive Active
Mutual fund v ETF assets
ETF net flows
ETF launches
Daily transparency Professional active management Multiple holdings Traded on exchange Can be bought/sold intraday Management fees Use of limit and stop-loss orders Ability to lend
Individual stocks
Mutual funds
Why active ETFs?
An active exchange-traded fund (ETF) is a basket of securities that trades on an exchange and combines features of mutual funds and individual stocks1. Active ETFs are known for their ability to provide access, transparency2, intraday trading, and active management capabilities.
Active ETFs are going mainstream – bringing investors powerful tools to pursue growth, manage risk, and navigate change in today’s evolving market. With expanded access to differentiated strategies, investors can now build more dynamic and personalized portfolios than ever before. Invesco has built a strong legacy in active ETF education and market engagement through sustained efforts and industry leadership – driving innovation and engagement in this burgeoning space.
How active ETFs are reshaping the investment landscape
Explore Invesco’s capabilities across sectors, markets, and cycles
Discover what’s possible
Invesco Distributors, Inc. is the U.S. distributor for Invesco's retail products and private placements. Invesco is not affiliated with Citywire.
