Rethink fixed income: Participate in possibility

Explore two ways to get exposure to today’s bond market opportunities: Invesco Rochester Municipal Opportunities Fund (ORNYX) and Invesco Total Return Bond ETF (GTO).

Hot air balloon

Are you missing out on today’s opportunities?

After the most aggressive Federal Reserve tightening cycle in four decades, many investors are sitting in cash, trying to predict what comes next before they get back in the market.

But investment opportunities exist in every environment. No matter the exact path of rates going forward, Invesco’s award-winning fixed income managers can help you participate in possibility — not just watch it from the sidelines.

Invest with Lipper’s
Fixed Income
Group of the Year

As an industry-recognized leader in fixed income, Invesco’s research, resources, and investment expertise can identify opportunities in the bond market and help manage the risks that come with buying and selling bonds when interest rates are poised to change.

ORNYX

Consistent, tax-free income potential in a 5-star fund

Two people stargazing

5-star rating from Morningstar

ORNYX has been recognized as a top-rated fund by Morningstar in the high yield muni category. As of June 30, 2024, ORNYX had an overall rating, based on risk-adjusted returns, of 5 stars out of 189 funds and was rated 4 stars out of 189 funds, 5 stars out of 182 funds and 5 stars out of 121 funds for the 3-, 5- and 10- year periods, respectively.

ORNYX product details

Transcript

Aerial view of the roads

Attractive tax-free yield potential

With compelling yields, diversification benefits and income generation, we believe municipal bonds are one of the most attractive opportunities in the fixed income space today. And the income provided by muni bonds is free from federal and, in some cases, state income taxes.

ORNYX product details

Transcript

Aerial view of a landscape

Diversification and consistent income

With over 1,500 holdings from 800 different issuers, Invesco Rochester Municipal Opportunities Fund (ORNYX) provides broad exposure to municipal bond opportunities — all chosen by the experts at Invesco, which was recognized by the LSEG Lipper Fund Awards as the top Best Group Large Fixed Income Company in 2024. Plus, the fund has delivered 365 consecutive monthly distributions to shareholders from November 1993 to March 2024.

ORNYX product details

Transcript

GTO

Every sector of the bond market in a cost-efficient ETF

Aerial view of people walking on a bridge

Opportunities across the entire bond market

Invesco Total Return Bond ETF (GTO) provides broad exposure to every sector of the bond market, including both “core” and “plus” sectors. Its comprehensive coverage is designed for investors seeking monthly income and total return opportunities.

GTO product details

Transcript

Aerial view of beach

Looking for the best of both worlds

GTO offers the benefits of an actively managed approach in a cost-efficient exchange-traded fund (ETF) structure. Its holdings are chosen by the experts at Invesco, which was recognized by the LSEG Lipper Fund Awards as the Best Group Large Fixed Income Company in 2024.

GTO product details

Transcript

Man setting a camp

4-star rating from Morningstar

GTO has been recognized as a highly rated fund by Morningstar, in the intermediate core-plus bond category. As of March 31, 2024, GTO had an overall rating, based on risk-adjusted returns, of 4 stars out of 557 funds and was rated 3 stars out of 557 funds, 4 stars out of 527 funds and not rated for the 3-, 5- and 10-year periods, respectively.

GTO product details

Transcript

Frequently asked questions

The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.

Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market.  The Invesco Municipal Bond team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.  

Municipalities have two main reasons for issuing bonds without a credit rating. First, some issues are of higher quality but the rating is foregone because the size or placement of the issue makes it uneconomical to pay for the rating. Second, many non-rated bonds would not meet the rating criteria of the rating agencies, or, if rated, would fall below investment grade (below triple-B).  

A total return bond fund is typically a diversified fixed income portfolio designed to invest in many bond sectors that may provide income and capital appreciation. Investments may include Treasury bonds, agency bonds, investment grade corporate bonds, commercial MBS, ABS and residential MBS.  In addition, the strategy may invest in high yield corporate debt, emerging market debt, and other types of bonds.

GTO is an actively managed intermediate-term bond exchange-traded fund for investors seeking monthly income and total return opportunities.

With a passive investment strategy, managers generally seek to precisely mirror their benchmark index’s holdings and are therefore able to charge lower fees. Typically, however, they don’t have the freedom to move into cash, or the ability to quickly raise funds in the midst of a market downturn to take advantage of opportunistic, tactical strategies.  Managers with an active investment strategy can overweight or underweight areas of the portfolio to add value.

Investors turn to Invesco for high-conviction bond strategies across the fixed income spectrum. Our team is empowered by a collaborative culture and extensive research capabilities across geographies, asset classes, and sectors. We bring the resources of a global asset manager while remaining nimble enough to add value through security selection. Through a rigorous, repeatable process that constantly identifies new themes and opportunities, we build best-idea portfolios that seek to deliver strong risk-adjusted performance over time.