Invesco Oppenheimer Master Inflation Protected Securities Fund

Data updated: 2020-05-14

C000209377 — Invesco Oppenheimer Master Inflation Protected Securities Fund. Inflation-Protected (TIPS) Bond. Holdings, fees, performance and SEC filings.

C000209377 Fund Overview

Invesco Oppenheimer Master Inflation Protected Securities Fund is a US mutual fund managed by Aim Investment Securities Funds (invesco Investment Securities Funds), categorised as Inflation-Protected (TIPS) Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

C000209377 Investment Objective and Strategy

Invesco Oppenheimer Master Inflation Protected Securities Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Aim Investment Securities Funds (invesco Investment Securities Funds).

Investment objective

The Fund’s investment objective is to seek total return.

Principal investment strategy

Under normal circumstances, the Fund will invest at least 80% of its net assets, plus borrowings for investment purposes, in inflation-indexed debt securities of varying maturities issued by the U.S. government, foreign governments, their agencies and instrumentalities, and U.S. and foreign corporations, and in derivatives and other instruments that have economic characteristics similar to such securities. Inflation-indexed debt securities are fixed income securities (also referred to as bonds) that are structured to seek to provide protection against inflation, a sustained increase in the price of goods and services that erodes the purchasing power of money. The value of the bonds principal or the interest rate paid on the bond is adjusted to track changes in a stated inflation measure. With respect to inflation-indexed bonds whose principal is adjusted with inflation, if the index measuring inflation falls, the principal value of the inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to smaller principal amounts) will be reduced.

If the index measuring inflation rises, both the principal value and the interest payable (calculated with respect to a larger principal amount) will increase. With respect to inflation-indexed bonds whose interest rate is adjusted with inflation, instead of adjusting the bonds principal amount, the inflation adjustment is reflected in the coupon payment. Because of this inflation adjustment feature, inflation-protected bonds typically have lower yields than conventional fixed-rate bonds with similar maturities. The Fund may invest a significant amount of its assets in Treasury Inflation-Protected Securities (TIPS). TIPS are backed by the full faith and credit of the U.S. government for payment of interest and repayment of principal and have little credit risk. The interest rate paid on TIPS is fixed.

The principal value rises or falls semi-annually based on published changes to the Consumer Price Index. If inflation occurs, the principal amount will be adjusted upwards, resulting in increased interest payments. If deflation occurs, the principal amount will be adjusted downwards, resulting in lower interest payments. The principal amount payable at maturity will be the greater of the adjusted principal amount and the original principal amount. While TIPS have little credit risk, they are subject to price fluctuations from changes in interest rates prior to their maturity. The Fund may invest in inflation-indexed debt securities having short, intermediate or long maturities. The Fund can invest in rated or unrated inflation-indexed debt securities. It does not limit its investments to a particular credit quality or rating category and can invest in inflation-indexed debt securities below-investment-grade (commonly called junk bonds).

However, the Funds investments in securities below-investment-grade, including its investments in inflation-indexed debt securities, will not exceed 20% of its net assets. The Fund may invest in inflation-indexed securities of issuers in both developed and emerging markets, and can invest up to 100% of its total assets in foreign securities. The Fund may buy inflation-indexed debt securities issued by companies of any size or market capitalization range and at times might increase its emphasis on securities of issuers in a particular capitalization range. When selecting inflation-indexed debt securities for investment, the Adviser seeks to build a broadly diversified portfolio to try to moderate the special risks of investing in inflation-indexed debt securities. The Funds portfolio manager typically employs a top down model to analyze and predict the direction of global inflation rates and economic conditions.

In selecting securities, the Funds portfolio manager researches the universe of inflation-indexed government and corporate securities and weighs yields and relative values against risks. The Funds portfolio manager currently focuses on the following factors, which may vary in particular cases and may change over time: Inflation rates and implied inflation rates (the difference in yield between conventional government bonds and related inflation-indexed bonds of comparable maturity) in the United States and other countries, Interest rates in the United States and other countries, Economic and monetary policies of the U.S. government and foreign governments, and Economic conditions in the United States and other countries. In addition to investments in inflation-indexed securities, the Fund may use certain other investments and investment strategies, including investments and investment strategies that are not indexed to inflation, described further below and in the Statement of Additional Information.

The Adviser might not always use all of these different types of investments and strategies. The allocation of the Funds portfolio among the different types of permitted investments will vary over time based upon the Advisers evaluation of economic and market trends. U.S. Government Securities. The Fund may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. Some of those securities are directly issued by the U.S. Treasury and are backed by the full faith and credit of the U.S. government. Full faith and credit means that the taxing power of the U.S. government is pledged to the payment of interest and repayment of principal on a security. Some securities issued by U.S. government agencies, such as Government National Mortgage Association pass-through mortgage obligations (Ginnie Maes), are also backed by the full faith and credit of the U.S.

government. Others are supported only by the credit of the agency (for example, obligations issued by the Federal Home Loan Banks, Fannie Mae bonds issued by the Federal National Mortgage Association and Freddie Mac obligations issued by the Federal Home Loan Mortgage Corporation). In September 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into conservatorship. U.S. Treasury Securities. Treasury securities are backed by the full faith and credit of the U.S. government for payment of interest and repayment of principal and have relatively little credit risk. Some of the securities that are issued directly by the U.S. Treasury are: Treasury bills (having maturities of one year or less when issued), Treasury notes (having maturities of from one to ten years when issued), Treasury bonds (having maturities of more than ten years when issued) and Treasury Inflation-Protection Securities (TIPS).

While U.S. Treasury securities have little credit risk, they are subject to price fluctuations from changes in interest rates prior to their maturity. Corporate Debt Obligations. The Fund can purchase debt obligations, such as bonds, debentures, notes and preferred stock issued by U.S. and foreign corporations, partnerships or other business entities. Debt securities purchased by the Fund may be subordinate to other liabilities of the issuer. If a borrower becomes insolvent, the borrowers assets may be insufficient to meet its obligations.

C000209377 Costs and Fees

C000209377 costs about $47 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 0.47%
  • Gross expense ratio: 0.47%
  • Portfolio turnover: 15%
  • Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000209377 Cashflows

Over the 12 months to 2020-02, Invesco Oppenheimer Master Inflation Protected Securities Fund had net outflows of $37.44M, from monthly SEC N-PORT filings.

MonthNet flow
2020-02$385
2020-01$0
2019-12−$6.27M
2019-11$0
2019-10−$11.21M
2019-09−$19.96M

C000209377 Debt Constituents

No individual debt constituents are reported in Invesco Oppenheimer Master Inflation Protected Securities Fund's latest SEC N-PORT filing.

C000209377 Prospectus and SEC Filings

Official Invesco Oppenheimer Master Inflation Protected Securities Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Related 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.