Invesco Balanced-Risk Retirement Now Fund

Data updated: 2021-03-15

C000042454 — Invesco Balanced-Risk Retirement Now Fund. Target Date / Glide Path Allocation · $16.17M AUM. Holdings, fees, performance and SEC filings.

C000042454 Fund Overview

Invesco Balanced-Risk Retirement Now Fund is a US mutual fund managed by Aim Growth Series (invesco Growth Series), categorised as Target Date / Glide Path Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: Aim Growth Series (invesco Growth Series)
Category: Target Date / Glide Path Allocation
Assets under management: $16.17M
1-year return: 5.9%
SEC CIK: 0000202032
SEC series ID: S000015569
Share class ID: C000042454

C000042454 Investment Objective and Strategy

Invesco Balanced-Risk Retirement Now Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Aim Growth Series (invesco Growth Series).

Investment objective

The Fund’s investment objective is to provide real return and,

Principal investment strategy

The Fund seeks to meet its investment objective by building a portfolio that includes Invesco Balanced-Risk Allocation Fund and two affiliated money market funds, Invesco Government & Agency Portfolio and Invesco Treasury Portfolio. The Fund will generally rebalance its assets to the Funds target allocations on a monthly basis. A list of the underlying funds and their approximate target fund weightings as of February 28, 2018 is set forth below: Underlying Funds Invesco Balanced-Risk Retirement Now Fund Invesco Balanced-Risk Allocation Fund 59.83% Invesco Government & Agency Portfolio 24.10% Invesco Treasury Portfolio 16.07% Total 100% The Funds name indicates that an investor in the Fund plans to retire and may stop making new investments in the Fund. Consistent with the Funds real return and capital preservation objectives, the Fund is designed for investors who expect to need all or most of their money in the Fund at retirement and for investors who plan to withdraw the value of their account in the Fund gradually after retirement.

Real return is total return reduced by the impact of inflation. The following chart displays how Invesco Advisers, Inc. (Invesco or the Adviser) expects the asset allocation for the Invesco Balanced-Risk Retirement Funds to change as their target retirement dates approach. The Invesco Balanced-Risk Retirement Funds employ a risk-balanced optimization process which accounts for the glide path (the glide path is the rate at which the asset mix changes over time). The glide path will become more conservative on a quarterly basis. Investments in the affiliated money market funds will continue to increase and investments in Invesco Balanced-Risk Allocation Fund and Invesco Balanced-Risk Aggressive Allocation Fund, as applicable, will continue to decrease until approximately the target retirement date.

Because the Fund is designed for investors who have already reached their target retirement date, the Fund's asset allocation is not expected to change. The actual asset allocations for the Fund may differ from those shown in the chart below. The following table lists the current target market exposures through Invesco Balanced-Risk Allocation Fund to equities, commodities and fixed income and through Invesco Government & Agency Portfolio and Invesco Treasury Portfolio to cash equivalents. The portfolio managers actively adjust portfolio positions in Invesco Balanced-Risk Allocation Fund to seek to minimize loss of capital, benefit from market opportunities and reduce excessive volatility. Due to the use of derivatives and other instruments that create leverage in Invesco Balanced-Risk Allocation Fund, an underlying fund, the percentages may not equal 100%.

The Funds target allocations may change over time and at any point in time the Funds actual asset allocations may be higher or lower than the target allocations shown in the chart below. Target Allocation from Retirement At Retirement Date Equities 24.00% Commodities 17.94% Fixed Income 36.12% Cash Equivalents 40.00% An investment in the Fund is not guaranteed, and you may experience losses, including near to, at, or after your target retirement date. There is no guarantee that the Fund will provide adequate income at or through your retirement. Investment Objectives and Strategies of the Underlying Funds Invesco Balanced-Risk Allocation Fund. Invesco Balanced-Risk Allocation Funds investment objective is to provide total return with a low to moderate correlation to traditional financial market indices.

Invesco Balanced-Risk Allocation Funds investment objective may be changed by the Board of Trustees (the Board) without shareholder approval. Invesco Balanced-Risk Allocation Funds investment strategy is designed to provide capital loss protection during down markets by investing in multiple asset classes. Under normal market conditions, Invesco Balanced-Risk Allocation Funds portfolio management team allocates across three asset classes: equities, fixed income and commodities, such that no one asset class drives Invesco Balanced-Risk Allocation Funds performance. Invesco Balanced-Risk Allocation Funds exposure to these three asset classes will be achieved primarily (generally over 65% based on notional exposure) through investments in derivative instruments including but not limited to futures, options and swap agreements.

The portfolio managers manage Invesco Balanced-Risk Allocation Funds portfolio using two different processes. One is strategic asset allocation, which the portfolio managers use to express their long term views of the market. The portfolio managers apply their strategic process to, on average, approximately 80% of Invesco Balanced-Risk Allocation Funds portfolio risk, as determined by the portfolio managers proprietary risk analysis. The other process is tactical asset allocation, which is used by the portfolio managers to reflect their shorter term views of the market. The strategic and tactical processes are intended to adjust portfolio risk in a variety of market conditions. The portfolio managers will implement their investment decisions through the use of derivatives and other investments that create economic leverage.

Invesco Balanced-Risk Allocation Fund uses derivatives and other leveraged instruments to create and adjust exposure to the asset classes. The portfolio managers make these adjustments to balance risk exposure when they believe it will benefit Invesco Balanced-Risk Allocation Fund. Using derivatives often allows the portfolio managers to implement their views more efficiently and to gain more exposure to the asset classes than investing in more traditional assets such as stocks and bonds would allow. The portfolio managers will also seek to generate income by writing (selling) put and call options on equities, equity indices and exchange-traded funds (ETFs). Invesco Balanced-Risk Allocation Fund may hold long and short positions in derivatives but seeks to maintain a net long position. A long derivative position involves Invesco Balanced-Risk Allocation Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short derivative position involves Invesco Balanced-Risk Allocation Fund writing (selling) a derivative with the anticipation of a price decrease of the underlying asset.

Invesco Balanced-Risk Allocation Funds use of derivatives and the leveraged investment exposure created by the use of derivatives are expected to be significant and greater than most mutual funds. Invesco Balanced-Risk Allocation Funds net asset value over a short to intermediate term is expected to be volatile because of the significant use of derivatives and other instruments that provide economic leverage including commodity-linked notes, ETFs and exchange-traded notes (ETNs). Volatility measures the range of returns of a security, fund or index, as indicated by the annualized standard deviation of its returns. Higher volatility generally indicates higher risk and is often reflected by frequent and sometimes significant movements up and down in value. It is expected that the annualized volatility level for Invesco Balanced-Risk Allocation Fund will be, on average, approximately 8%.

Invesco Balanced-Risk Allocation Funds actual volatility level for longer or shorter periods may be materially higher or lower than the target level depending on market conditions, and therefore Invesco Balanced-Risk Allocation Funds risk exposure may be materially higher or lower than the level targeted by the portfolio managers. Invesco Balanced-Risk Allocation Fund will have the potential for greater gains, as well as the potential for greater losses, than if Invesco Balanced-Risk Allocation Fund did not use derivatives or other instruments that have an economic leveraging effect. Economic leveraging tends to magnify, sometimes significantly depending on the amount of leverage used, the effect of any increase or decrease in Invesco Balanced-Risk Allocation Funds exposure to an asset class and may cause Invesco Balanced-Risk Allocation Funds net asset value to be more volatile than a fund that does not use leverage.

For example, if the Adviser gains exposure to a specific asset class through an instrument that provides leveraged exposure to the class, and that leveraged instrument increases in value, the gain to Invesco Balanced-Risk Allocation Fund will be magnified; however, if the leveraged instrument decreases in value, the loss to Invesco Balanced-Risk Allocation Fund will be magnified. The Advisers investment process has three steps. The first step involves asset selection within the three asset classes (equities, fixed income and commodities). The portfolio managers select investments to represent each of the three asset classes from a universe of over fifty investments. The selection process (1) evaluates a particular investments theoretical case for long-term excess returns relative to cash; (2) screens the identified investments against minimum liquidity criteria; and (3) reviews the expected correlation among the investments, meaning the likelihood that the value of the investments will move in the same direction at the same time, and the expected risk of each investment to determine whether the selected investments are likely to improve the expected risk adjusted return of Invesco Balanced-Risk Allocation Fund.

The second step in the investment process involves portfolio construction. The portfolio managers use their own estimates for risk and correlation to weight each asset class and the investments within each asset class to construct a portfolio that they believe is risk-balanced. Periodically, the management team re-estimates the risk contributed by each asset class and investment and re-balances the portfolio; the portfolio also may be rebalanced when Invesco Balanced-Risk Allocation Fund makes new investments. Taken together, the first two steps in the process result in the strategic allocation. In the third step of the investment process, using a systematic approach based on fundamental principles, the portfolio management team analyzes the asset classes and investments, considering the following factors: valuation, economic environment and historic price movements.

Regarding valuation, the portfolio managers evaluate whether asset classes and investments are attractively priced relative to fundamentals. Next, the portfolio managers assess the economic environment and consider the effect that monetary policy and other determinants of economic growth, inflation and market volatility will have on the asset classes and investments. Lastly, the portfolio managers assess the impact of historic price movements for the asset classes and investments on likely future returns. Utilizing the results from the analysis described above, the portfolio managers determine tactical short-term over-weight (buying additional assets relative to the strategic allocation) and under-weight (selling assets relative to the strategic allocation) positions for the asset classes and investments.

The management team actively adjusts portfolio positions to reflect the near-term market environment, while remaining consistent with the balanced-risk long-term portfolio structure described in step two above. Invesco Balanced-Risk Allocation Funds equity exposure will be achieved through investments in derivatives that track equity indices from developed countries. In addition, Invesco Balanced-Risk Allocation Fund may invest directly in common stock. Invesco Balanced-Risk Allocation Funds fixed income exposure will be achieved through derivative investments that offer exposure to issuers in developed markets that are rated investment grade or unrated but deemed to be investment grade quality by the Adviser, including U.S. and foreign government debt securities having intermediate (5 10 years) and long (10 plus years) term maturity.

C000042454 Performance

Total returns for C000042454 (as of 2026-10-01), from SEC filings.

Period	Total return
1 year	5.9%

C000042454 Risk Information

Risk metrics for C000042454, derived from monthly returns in SEC filings.

1-year volatility (annualised): 8.4%

C000042454 Costs and Fees

C000042454 costs about $84 per $10,000 invested per year in fund expenses.

Net expense ratio: 0.84%
Gross expense ratio: 2.08%
Portfolio turnover: 11%
Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000042454 Cashflows

Over the 12 months to 2020-12, Invesco Balanced-Risk Retirement Now Fund had net outflows of $2.53M, from monthly SEC N-PORT filings.

Month	Net flow
2020-12	−$1.34M
2020-11	−$535.72K
2020-10	−$67.43K
2020-09	−$19.46K
2020-08	−$115.52K
2020-07	−$157.99K

C000042454 Debt Constituents

No individual debt constituents are reported in Invesco Balanced-Risk Retirement Now Fund's latest SEC N-PORT filing.

C000042454 Prospectus and SEC Filings

Official Invesco Balanced-Risk Retirement Now Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Target Date / Glide Path Allocation funds tracked on ABC INVEST:

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.