Disclosure
The Invesco Short Duration US Government Securities Fud ("USTB") is limited to investors that meet certain criteria. This Website shall not constitute an offer to buy or sell, which may be made only at the time a qualified offeree receives the USTB offering materials, which will describe the offering and its terms.
Summary of Risk Factors
Invesco is not affiliated with Superstate Services LLC which serves as the Transfer Agent of the Fund. Tranfer Agent's duties do not include solicitation, marketing or distribution of Shares.
Prospective investors should carefully consider the following risks factors, which individually or collectively could adversely affect the value of the Fund. There is no assurance the Fund will achieve its investment objective or that investors will receive any return of or on their capital. Past performance is not indicative of future results. Investors should review the Offering Memorandum and consult their legal, tax, and financial advisors before investing. Please see the Invesco Short Duration US Government Securities Fund PPM for a more comprehensive discussion of risk factors and other potential conflicts of interest starting on page 24.
- The Fund relies significantly on the continued services of key investment and operational personnel. Past performance of the Fund or such individuals is not indicative of future results. The loss or unavailability of key personnel, and any inability to replace them, could adversely affect the Fund’s operations and performance, with uncertain impact.
- The Fund is subject to operational risks, including errors in processing, valuation, recordkeeping and transaction execution, as well as failures in systems, controls or communications. The Fund relies on the Investment Manager and third-party service providers for critical systems and operations, and disruptions or mistakes by these parties may result in financial loss, business interruption, regulatory exposure or reputational harm. While business continuity plans exist, there is no assurance they will be effective in all circumstances.
- The Investor Portal may be subject to technical or operational disruptions that affect availability or reliability. Access is secured by password and two-factor authentication, and users are responsible for restricting access to authorized parties. Unauthorized activity must be reported promptly and may be reversed at the Transfer Agent’s discretion.
- Shareholders have limited rights compared to investors in other collective investment vehicles. They do not participate in management, have no voting or approval rights under the Trust Agreement, and must rely on the Investment Manager’s discretion. The Investment Manager may modify certain Fund limitations without shareholder consent and is not obligated to consider shareholder interests. While the Investment Manager may limit the factors it considers, it remains subject to certain non-waivable fiduciary obligations under the Advisers Act.
- The Fund indemnifies the Investment Manager and other service providers for certain liabilities, which may reduce Shareholder returns, and such parties may benefit from broad exculpation. These obligations are payable from the Fund’s assets and may limit Shareholders’ rights of recourse. The Fund and its service providers may also be required to disclose Shareholder information to satisfy legal or regulatory requirements.
- The Fund and its service providers are vulnerable to cyberattacks, system failures and unauthorized access, which may result in operational disruptions, financial loss and exposure of sensitive Shareholder information. Such incidents could lead to increased costs, regulatory consequences and reputational damage, and may not be fully covered by insurance.
- The Investment Manager may, in its sole discretion, require a Shareholder to redeem all or part of their Shares at any time, including for regulatory, legal or compliance reasons. Such forced redemptions may result in adverse tax and economic consequences, including the realization of gains at an inopportune time.
- Large or rapid Shareholder redemptions may require the Fund to liquidate investments quickly, potentially reducing asset values and disrupting its strategy. A smaller asset base may also make it more difficult to generate returns or recover losses due to lower scale efficiencies.
- Protocol Redeem may enable faster USDC redemptions of Tokenized Shares but is available only on a limited, “when available” basis and subject to dynamic daily limits, which may restrict or prevent processing—particularly for large or late-day requests. Timing is not guaranteed; despite references to “instantaneous,” transactions may be delayed due to blockchain, network, cybersecurity, or other operational disruptions, and the functionality is limited to the Ethereum blockchain. The process is more technically complex and may result in errors, failed transactions or cancellations requiring resubmission by investors. Protocol Redeems rely on a Liquidity Facility with an affiliated provider that advances redemption proceeds (subject to a cap), and such advances may accrue interest at market-based rates, reducing Fund returns. If the Liquidity Facility is unavailable or the provider fails to fund advances, Protocol Redeems may be delayed or suspended. In the event of the Fund’s default or insolvency, the liquidity provider’s claims would rank senior to Shareholders, which could reduce amounts recoverable by investors.
- The Fund uses a continuously calculated NAV per Share, based on a linear extrapolation of prior Market Day valuations that incorporates estimated income and expenses rather than real-time market prices. As a result, the Continuous NAV may differ, potentially materially, from a NAV based on current market values, particularly during periods of intraday market volatility. This methodology also introduces additional calculation and operational complexities, which may increase the risk of errors or inaccuracies and could adversely affect Shareholders.
- The Fund is not registered as an investment company under the Investment Company Act and is therefore not subject to the regulatory protections applicable to registered funds, including requirements relating to governance, custody of assets and limitations on affiliated transactions.
- 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.
- Investments in U.S. Government securities are subject to interest rate risk and market value fluctuations. Although backed by the full faith and credit of the United States, such securities may be negatively affected by concerns regarding the government’s ability to meet its obligations, and their value may decline, impacting the Fund’s NAV.
- The Fund’s yield will fluctuate as portfolio securities mature or are reinvested, particularly in changing interest rate environments. Declining or low interest rates may reduce income, and in extreme cases, the Fund may be unable to maintain a positive yield without affecting its NAV. Inflation and changes in monetary policy may further impact returns.
- Repurchase agreements expose the Fund to counterparty risk. If a counterparty fails to repurchase the securities, the Fund may incur delays or losses, including from declines in collateral value. In such cases, any shortfall may result in an unsecured claim that could be uncollectible if the counterparty becomes insolvent.
- Disruptions in the financial services industry, including liquidity shortages, defaults or insolvencies of financial institutions or counterparties, may adversely affect the Fund. If a counterparty, custodian or service provider becomes insolvent, the Fund may face delays or losses in accessing assets or completing transactions, and uninsured assets may be at risk of loss.
- Inflation may reduce the real value of the Fund’s investments and income, while rising interest rates in response to inflation may adversely affect performance. Conversely, deflation may increase the relative burden of debt, potentially impairing issuers’ ability to meet obligations and negatively impacting the Fund.
- The Fund’s transactions, particularly in private markets, expose it to the risk that counterparties may fail to settle or perform obligations, resulting in losses. This risk may be heightened for longer-term transactions or when exposures are concentrated with a single or limited group of counterparties, and there is no assurance that all counterparties will meet their obligations.
- Stablecoins may not always be redeemable at a 1:1 value due to fluctuations or issues with underlying reserve assets, which may be insufficient to meet redemption demands during periods of stress or loss of market confidence. Prices may deviate from their intended stability, particularly during market disruptions or large-scale redemptions. In periods of market stress or reduced confidence, redemption demands may exceed available reserves, potentially leading to price volatility or losses. Stablecoins also operate within an evolving regulatory environment, and new or changing laws may affect their availability, functionality or cost, which could adversely impact the Fund and investors utilizing stablecoin-related services.
- Use of USDC services involves additional risks beyond an investment in the Fund, including those described by Circle and other service providers under separate terms, onboarding requirements and disclosures, which investors should review carefully. The timing and execution of USDC transactions are subject to third-party processes and controls. These services are optional and intended as a convenience; investors should only utilize them if they can bear the associated economic risks. The decision to transact in USDC rather than U.S. dollars is solely at the investor’s discretion.
- The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
- The regulatory landscape for digital assets and blockchain technology is evolving rapidly and remains uncertain across jurisdictions. In the U.S., digital assets may be classified differently depending on their use, including as securities or commodities, which could affect their value, tradability and legal status. Regulatory changes or enforcement actions may limit or restrict the use, transferability or conversion of digital assets, including Tokenized Shares, and could adversely impact the Fund’s operations. New or changing laws, differing international approaches, and interpretive uncertainty may affect the Fund’s ability to issue, redeem or support Tokenized Shares, and could result in legal, operational or compliance risks, including potential penalties. The novel nature of Tokenized Shares may also give rise to unresolved legal or practical issues that could materially affect the Fund and its investors.
- Transfers of Shares are subject to consent requirements and, for Tokenized Shares, automated smart contract controls, which are novel and may not satisfy all legal or regulatory standards. Transfer restrictions—both legal and technical—may limit liquidity and the ability to sell Shares. An active secondary market, particularly for Tokenized Shares, may increase the risk that the Fund fails to meet requirements for applicable securities law exemptions, including investor qualification and manner of sale rules. Any failure of transfer processes, smart contracts or compliance mechanisms could result in regulatory issues that adversely affect the Fund’s operations and returns. In addition, reliance on blockchain networks that are not subject to comprehensive regulation may introduce further uncertainty and could impair the ability to transfer Shares, negatively impacting liquidity.
- The Fund relies on smart contracts to facilitate the issuance, transfer and redemption of Tokenized Shares. These automated protocols may contain errors, bugs or security vulnerabilities that could result in operational disruptions, improper transactions or losses, potentially adversely affecting the Fund and its investors.
- Transactions on designated blockchains (e.g., Ethereum, Solana or Plume) require payment of network “gas” fees in the applicable native digital asset, which can be volatile and may increase significantly during periods of network congestion. Higher fees may be required to ensure timely processing, and transactions may be delayed or fail if fees are insufficient. The Fund does not control network conditions, and transaction costs and timing are dependent on external factors. Smart contract errors may also result in unintended or excessive fee consumption. Shareholders are responsible for all associated fees and any applicable taxes, which may adversely affect transaction efficiency and overall returns.
- Tokenized Shares are not listed on any exchange or trading system and may only be transferred through limited peer-to-peer transactions, subject to restrictions. The pool of potential buyers is narrow; prices are negotiated and may differ from NAV and required counterparty information may not be readily available. As a result, liquidity may be limited, and Shareholders may be unable to sell their Shares in a timely manner or at all.
- The Fund may be subject to various actual and perceived conflicts of interest involving the Investment Manager and its affiliates. These parties manage and advise other accounts with potentially overlapping strategies, which may create competing interests in the allocation of opportunities and resources. Not all conflicts can be identified, disclosed or resolved in a manner favorable to the Fund, and their resolution generally involves the Investment Manager’s discretion. By investing, Shareholders acknowledge and accept these conflicts, which could adversely affect the Fund’s operations and performance.
- Invesco is not affiliated with Superstate Services LLC which serves as the Transfer Agent of the Fund. Transfer Agent's duties do not include solicitation, marketing or distribution of Shares.
