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).
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
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.
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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.
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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.
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GTO
Every sector of the bond market in a cost-efficient ETF
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.
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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.
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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.
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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.
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LSEG Lipper Fund Awards. © 2024 LSEG Lipper. All 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. Asset class group awards will be given to the best large and small groups separately. Large fund family groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. Small fund family groups will need to have at least three distinct portfolios in one of the asset classes – equity, bond, or mixed-asset. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period. In cases of identical results, the lower average percentile rank will determine the winner.
Source: Morningstar Inc. 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. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. 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. ©2024 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 does not guarantee future results. The top 10% of funds 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 are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.
Invesco does not offer tax advice. Please consult your own tax professional for information regarding your personal tax situation.
There is no guarantee that the Fund's income will be exempt from federal and state income taxes.
A plus strategy adds additional fixed income sectors like high yield bonds, emerging market bonds, and floating rate bank loans in an attempt to improve income or return potential in exchange for a higher risk profile.
Core sectors are the main industries in the economy.
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.
GTO:
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
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.
ORYNX:
There is no guarantee that the Fund's income will be exempt from federal and state income taxes.
All or a portion of the Fund’s otherwise tax-exempt income may be subject to the federal alternative minimum tax.
