ACTSX — Invesco High Yield Municipal Fund, Class R6

ACTSX Fund Overview

ACTSX — Invesco High Yield Municipal Fund, Class R6 is a US mutual fund managed by Aim Tax-Exempt Funds (invesco Tax-Exempt Funds), categorised as Long Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Aim Tax-Exempt Funds (invesco Tax-Exempt Funds)
• Category: Long Corporate Bond
• Assets under management: $6.58B
• 1-year return: 7.3%
• Ticker: ACTSX
• SEC CIK: 0000909466
• SEC series ID: S000027866
• Share class ID: C000188917

ACTSX Investment Objective and Strategy

Invesco High Yield Municipal Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Aim Tax-Exempt Funds (invesco Tax-Exempt Funds).

Investment objective

The Funds investment objective is to seek federal tax-exempt current income and taxable capital appreciation.

Principal investment strategy

Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities. The 80% investment policy stated in the foregoing sentence is a fundamental policy of the Fund and may not be changed without shareholder approval of a majority of the Funds outstanding voting securities, as defined in the Investment Company Act of 1940, as amended (1940 Act). In complying with this 80% investment policy, the Fund may invest in derivatives and other instruments that have economic characteristics similar to the Funds investments that are counted toward the 80% investment policy. For purposes of the Fund's 80% investment policy, municipal securities include debt obligations of states, territories or possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the interest on which is exempt from federal income tax, at the time of issuance, in the opinion of bond counsel or other counsel to the issuers of such securities.

The principal types of municipal debt securities purchased by the Fund are revenue obligations and general obligations. To meet its investment objective, the Fund invests in different types of general obligation and revenue obligation securities, including fixed and variable rate securities, municipal notes, variable rate demand notes, municipal leases, custodial receipts, and participation certificates. The Fund may invest in these and other types of municipal securities. Under normal market conditions, the Fund invests primarily in municipal securities classified as revenue bonds. Invesco Advisers, Inc. (Invesco or the Adviser) generally seeks to achieve the Funds investment objective by investing at least 75% of its net assets in higher yielding municipal securities, specifically medium- and lower-grade municipal securities.

Medium- and lower-grade municipal securities are securities rated by S&P or Fitch, Inc. (Fitch) as BBB+ through D (inclusive) for bonds or SP-2 or lower for notes; by Moodys as Baa1 through D (inclusive) for bonds or MIG3 or VMIG3 or lower for notes; or unrated municipal securities determined by the Adviser to be of comparable quality. If two or more NRSROs have assigned different ratings to a security, the Adviser uses the lowest rating assigned. Medium- and lower-grade securities are, therefore, inclusive of some securities rated investment-grade. Investment-grade securities are: (i) securities rated BBB- or higher by S&P Global Ratings (S&P) or Baa3 or higher by Moodys Ratings (Moodys) or an equivalent rating by another nationally recognized statistical rating organization (NRSRO), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined by the Adviser to be of comparable quality.

Most of the municipal securities in which the Fund currently invests are rated below-investment-grade. Below-investment-grade securities are those rated below the four highest rating categories of S&P, Moody's, Fitch or another NRSRO (or, in the case of unrated securities, determined by the Adviser to be comparable to securities rated below-investment-grade). Securities rated below-investment-grade are commonly referred to as junk bonds. At times, the market conditions in the municipal securities markets may be such that the Adviser may invest in higher-grade issues, particularly when the difference in returns between quality classifications is very narrow or when the Adviser expects interest rates to increase. Higher-grade securities are securities that are rated higher than medium- or lower-grade securities by Moodys, S&P, or Fitch, or considered by the Adviser to be of comparable quality, including municipal securities rated A-, SP-1 or higher by S&P or rated A3, MIG2, VMIG2 or higher by Moodys and tax-exempt commercial paper rated A-3 or higher by S&P or rated P-3 or higher by Moodys or unrated securities determined by the Adviser to be of comparable quality.

The Fund may invest more than 25% of its net assets in a segment of the municipal securities market with similar characteristics if the Adviser determines that the yields available from obligations in a particular segment justify the additional risks of a larger investment in such segment. The Fund may not, however, invest more than 25% of its net assets in industrial development revenue bonds issued for companies in the same industry. The Fund has no policy limiting its investments in municipal securities whose issuers are located in the same state. However, it is not the present intention of the Fund to invest more than 25% of the value of its net assets in issuers located in the same state. The Fund may invest up to 20% of its net assets (plus borrowings for investment purposes) in investments that generate income subject to income taxes.

Taxable investments include many of the types of securities the Fund would buy for temporary defensive purposes. The Fund does not anticipate investing substantial amounts of its assets in taxable investments under normal market conditions or as part of its normal trading strategies and policies. Under normal market conditions, the Fund may invest all or a substantial portion of its assets in municipal securities that are subject to the federal alternative minimum tax (AMT). From time to time, the Fund temporarily may invest up to 10% of its net assets in tax exempt money market funds and such instruments will be treated as investments in municipal securities. The Fund may invest in illiquid or thinly traded investments. The Fund may also invest in securities that are subject to resale restrictions and/or exempt from registration under the Securities Act of 1933, as amended (Securities Act), such as those contained in Rule 144A promulgated under the Securities Act.

The Funds 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 may buy or sell a security with payment and delivery taking place in the future. The Fund can invest in inverse floating rate interests (Inverse Floaters) issued in connection with tender option bond (TOB) financing transactions to generate leverage for the Fund. The Funds investments in Inverse Floaters are included for purposes of the 80% policy described above. The Fund may invest in distressed debt securities and defaulted securities. The Fund can invest in derivative instruments, including futures contracts and swap contracts.

The Fund can use futures contracts, including interest rate futures, to reduce exposure to interest rate changes and to manage duration. The Fund can use swap contracts, including interest rate swaps, to seek to hedge its exposure to interest rates. Derivatives and other instruments that provide investment exposure to the investments subject to the 80% investment policy and derivatives that provide investment exposure to one or more market risk factors associated with such investments may be included in the Fund's 80% investment policy. The Fund can borrow money for investment-related purposes including to purchase additional securities, which is another form of leverage. The Fund may also borrow to meet redemption obligations or for temporary and emergency purposes. Although the amount of borrowing will vary from time to time, the amount of leveraging from borrowings will not exceed one-third of the Funds total assets.

The Fund can invest up to 25% of its total assets in tobacco settlement revenue bonds, which make payments only from a states interest in the Master Settlement Agreement (MSA), and up to 25% of its total assets in tobacco bonds subject to a states appropriation pledge, which make payments from both MSA revenue and a states appropriation pledge. The Adviser buys and sells securities for the Funds portfolio with a view towards seeking a high level of interest income exempt from federal income tax and selects securities that the Adviser believes entail reasonable credit risk considered in relation to the investment policies of the Fund. As a result, the Fund will not necessarily invest in the highest yielding municipal securities permitted by its investment policies if the Adviser determines that market risks or credit risks associated with such investments would subject the Funds portfolio to undue risk.

Decisions to purchase or sell securities are determined by the relative value considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Funds macro risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Funds exposure to a particular security or issuer, degradation of an issuers credit quality, or general liquidity needs of the Fund. The potential for realization of capital gains or losses resulting from possible changes in interest rates will not be a major consideration and frequency of portfolio turnover generally will not be a limiting factor if the Adviser considers it advantageous to purchase or sell securities.

ACTSX Holdings

Top 10 holdings of Invesco High Yield Municipal Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all ACTSX holdings

ACTSX Portfolio Allocation

Asset-class allocation of Invesco High Yield Municipal Fund by percentage of net assets, from the latest SEC N-PORT filing.

ACTSX Performance

Total returns for ACTSX (as of 2026-10-01), from SEC filings.

ACTSX Risk Information

Risk metrics for ACTSX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 4.98%

ACTSX Costs and Fees

ACTSX costs about $99 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.99%
• Gross expense ratio: 0.99%
• Portfolio turnover: 26%
• Brokerage commissions: 0.01 bps of average net assets (SEC N-CEN)

ACTSX Cashflows

Over the 12 months to 2026-05, Invesco High Yield Municipal Fund had net outflows of $687.64M, from monthly SEC N-PORT filings.

ACTSX Debt Constituents

Largest debt holdings of Invesco High Yield Municipal Fund by percentage of net assets, from the latest SEC N-PORT filing.

ACTSX Prospectus and SEC Filings

Official Invesco High Yield Municipal Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-06-25
• Prospectus (485BPOS) — filed 2025-06-26
• Prospectus (485BPOS) — filed 2024-06-28
• Portfolio holdings (N-PORT) — filed 2026-07-30
• Portfolio holdings (N-PORT) — filed 2026-04-28
• Portfolio holdings (N-PORT) — filed 2026-01-29
• Annual census (N-CEN) — filed 2026-05-13
• Annual census (N-CEN) — filed 2025-05-14

Related Funds

Other Long Corporate Bond funds tracked on ABC INVEST:

• iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
• Vanguard High-Yield Tax-Exempt Fund (VWAHX)
• PIMCO Investment Grade Credit Bond Fund (PIGIX)
• Nuveen High Yield Municipal Bond Fund (NHMAX)
• Income Fund (CMPIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.