Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund

Data updated: 2020-06-01

C000209183 — Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund. Short Corporate Bond. Holdings, fees, performance and SEC filings.

C000209183 Fund Overview

Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund is a US mutual fund managed by Aim Counselor Series Trust (invesco Counselor Series Trust), categorised as Short Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

C000209183 Investment Objective and Strategy

Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Aim Counselor Series Trust (invesco Counselor Series Trust).

Investment objective

The Fund’s investment objective is to seek tax-free income.

Principal investment strategy

Under normal market conditions, and as a fundamental policy, the Fund invests at least 80% of its net assets (plus borrowings for investment purposes) in securities the income from which, in the opinion of counsel to the issuer of each security, is exempt from regular federal individual and, as applicable, the Funds state income tax. The 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 requirement, the Fund may invest in derivatives and other instruments that have economic characteristics similar to the Funds direct investments that are counted toward the 80% investment requirement.

The Fund selects investments without regard to the alternative minimum tax (AMT). Under normal market conditions, the Fund will generally maintain an investment portfolio with a weighted average effective duration of less than five years. Duration is a measure of the portfolios price sensitivity to interest rates (expressed in years). As duration increases, volatility increases as applicable interest rates change. Under normal market conditions, the Fund will not invest more than 35% of its total assets in securities rated below investment-grade (commonly called junk bonds). This restriction is applied at the time of purchase and the Fund may continue to hold a security whose credit rating has been downgraded or, in the case of an unrated security, after the Adviser, has changed its assessment of the securitys credit quality.

As a result, credit rating downgrades or other market fluctuations may cause the Funds holdings of below-investment-grade securities to exceed, at times significantly, this restriction for an extended period of time. Investment-grade securities are rated in one of the four highest rating categories of a nationally recognized statistical rating organization, such as S&P Global Ratings (or in the case of unrated securities, determined by the Adviser to be comparable to securities rated investment-grade). The Fund also invests in unrated securities, in which case the Adviser internally assigns ratings to those securities, after assessing their credit quality and other factors, in investment-grade or below-investment-grade categories similar to those of nationally recognized statistical rating organizations.

There can be no assurance, nor is it intended, that the Advisers credit analysis process is consistent or comparable with the credit analysis process used by a nationally recognized statistical ratings organization. To the extent the Fund invests in pre-refunded municipal securities collateralized by U.S. government securities, the Fund will treat those securities as investment-grade (AAA) securities even if the issuer itself has a below-investment-grade rating. The Fund invests in municipal securities issued by the governments of states, their political subdivisions (such as cities, towns, counties, agencies and authorities) and the District of Columbia, U.S. territories, commonwealths and possessions or by their agencies, instrumentalities and authorities. These primarily include municipal bonds (long-term (more than one-year) obligations), municipal notes (short-term obligations), interests in municipal leases, and tax-exempt commercial paper.

Municipal securities generally are classified as general or revenue obligations. General obligations are secured by the issuers pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue obligations are bonds whose interest is payable only from the revenues derived from a particular facility or class of facilities, or a specific excise tax or other revenue source. The Fund seeks to maintain a dollarweighted average effective portfolio maturity of five years or less, however it can buy securities that have short, intermediate or long maturities. A substantial percentage of the securities the Fund buys may be callable, meaning that the issuer can redeem them before their maturity date. Because of events affecting the bond markets and interest rate changes, the maturity of the portfolio might not meet the target sought to be maintained at all times.

The Fund can invest substantial amounts of its assets in private activity municipal securities that pay interest that is tax-exempt but which may be a tax-preference item for investors subject to alternative minimum taxation. The Fund also borrows for leverage and invests in inverse floaters, a variable rate obligation, to seek increased income and return. The Fund can expose up to 15% of its total assets to the effects of leverage from its investments in inverse floaters. The Fund can also borrow money to purchase additional securities, another form of leverage. 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. In selecting investments for the Fund, the portfolio managers generally look for a wide range of issuers and securities nationwide that provide high current income, including unrated bonds and securities of smaller issuers that might be overlooked by other investors and funds that offer high current income.

The portfolio managers also focus on securities with coupon interest or accretion rates, current market interest rates, callability and call prices that might change the effective maturity of particular securities and the overall portfolio and securities with various maturities in an effort to reduce share price volatility. The portfolio managers may consider selling a security if any of these factors no longer applies to a security purchased for the Fund, but are not required to do so.

C000209183 Costs and Fees

C000209183 costs about $184 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 1.84%
  • Gross expense ratio: 1.84%
  • Portfolio turnover: 20%
  • Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000209183 Cashflows

Over the 12 months to 2020-03, Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund had net outflows of $97.25M, from monthly SEC N-PORT filings.

MonthNet flow
2020-03−$43.31M
2020-02−$1.96M
2020-01−$4.97M
2019-12−$12.17M
2019-11−$8.79M
2019-10−$10.45M

C000209183 Debt Constituents

No individual debt constituents are reported in Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund's latest SEC N-PORT filing.

C000209183 Prospectus and SEC Filings

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

Related Funds

Other Short Corporate Bond 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.