GMSDX — Invesco Macro Allocation Strategy Fund
Data updated: 2025-04-01
GMSDX — Invesco Macro Allocation Strategy Fund. Alternative · $158.13M AUM · 1.47% expense ratio. Holdings, fees, performance and SEC filings.
GMSDX Fund Overview
GMSDX — Invesco Macro Allocation Strategy Fund is a US mutual fund managed by Aim Investment Funds (invesco Investment Funds), categorised as Alternative. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Aim Investment Funds (invesco Investment Funds)
- Category: Alternative
- Assets under management: $158.13M
- 1-year return: 0.5%
- Ticker: GMSDX
- SEC CIK: 0000826644
- SEC series ID: S000038362
- Share class ID: C000131984
GMSDX Investment Objective and Strategy
Invesco Macro Allocation Strategy Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Aim Investment Funds (invesco Investment Funds).
Investment objective
The Fund's investment objective is to seek a positive absolute return over a complete economic and market cycle.
Principal investment strategy
The Funds investment strategy is designed to provide capital loss protection during down markets. Under normal market conditions, the Funds portfolio management team allocates across three asset classes: equities, fixed income and commodities, such that no one asset class drives the Funds performance. The Funds exposure to these three assets classes will be achieved primarily (generally over 65% based on notional exposure) through investments in derivative instruments including but not limited to futures and swap agreements. The portfolio managers manage the 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 20% of the Funds portfolio risk, as determined by the portfolio managers proprietary risk analysis, and this portion of the Fund holds only long positions in derivatives.
The other process is tactical asset allocation, which is used by the portfolio managers to reflect their shorter term views of the market. The tactical asset allocation process will result in the Fund having long and short positions within or among one or more of the three asset classes (equities, fixed income and commodities). The tactical asset allocation process likely will account for the majority of the Funds volatility and performance. 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. In addition, the Fund may invest directly in common stock. The 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 (as part of the strategic process) and to add long or short exposure to the asset classes (as part of the tactical process) when they believe it will benefit the 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 Fund holds long and short positions in derivatives. A long derivative position involves the Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short derivative position involves the Fund writing (selling) a derivative with the anticipation of a price decrease of the underlying asset. The 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.
The 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, exchange-traded funds (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 the Fund will be, on average, approximately 9%. The 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 the Funds risk exposure may be materially higher or lower than the level targeted by the portfolio managers.
The Funds investment strategy seeks to achieve a positive absolute return over a complete economic and market cycle, notwithstanding the expected short and intermediate term volatility in the net asset value of the Fund. The Fund will have the potential for greater gains, as well as the potential for greater losses, than if the 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 the Funds exposure to an asset class and may cause the Funds net asset value to be more volatile than a fund that does not use leverage. For example, if Invesco Advisers, Inc. (Invesco or 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 the Fund will be magnified; however, if the leveraged instrument decreases in value, the loss to the Fund will be magnified.
The Fund is non-diversified, which means it can invest a greater percentage of its assets in a small group of issuers or in any one issuer than a diversified fund can. 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 the 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 rebalances the portfolio; the portfolio also may be rebalanced when the 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.
When the tactical position is negative for an investment and its size is larger than the strategic position for that investment, the result is a short derivative position. The size and number of short derivative positions held by the Fund will vary with the market environment. In some cases there will be no short derivative positions in the Fund. In other cases the net short derivative exposure of the Fund (the amount by which short positions exceed long positions) could be 50% of net asset value or higher. The Funds long positions in derivative instruments generally will benefit from an increase in the price of the underlying investment. The Funds short positions in derivative instruments generally will benefit from a decrease in the price of the underlying investment. The Funds equity exposure will be achieved through investments in derivatives that track equity indices from developed and/or emerging countries.
In addition, the Fund may invest directly in common stock. The 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. The Funds commodity exposure will be achieved through investments in ETFs, commodity futures and swaps, ETNs and commodity-linked notes, some or all of which will be owned through Invesco Cayman Commodity Fund V Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (Subsidiary). The commodity investments will be focused in four sectors of the commodities market: energy, precious metals, industrial metals and agriculture/livestock.
The Fund will invest in the Subsidiary to gain exposure to commodities markets. The Subsidiary, in turn, will invest in commodity futures and swaps, commodity-linked notes, ETFs and ETNs. The Subsidiary is advised by the Adviser, has the same investment objective as the Fund and generally employs the same investment strategy. Unlike the Fund, however, the Subsidiary may invest without limitation in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Subsidiary holds cash and can invest in cash equivalent instruments, including affiliated money market funds, some or all of which may serve as margin or collateral for the Subsidiarys derivative positions. Because the Subsidiary is wholly-owned by the Fund, the Fund will be subject to the risks associated with any investment by the Subsidiary.
The Fund generally will maintain 50% to 100% of its net assets (including assets held by the Subsidiary) in cash and cash equivalent instruments, including affiliated money market funds, as margin or collateral for the Funds obligations under derivative transactions. The larger the value of the Funds derivative positions, as opposed to positions held in non-derivative instruments, the more the Fund will be required to maintain cash and cash equivalents as margin or collateral for such derivatives. The derivative instruments in which the Fund will principally invest will include but are not limited to futures, options and swap agreements.
GMSDX Holdings
Top 8 holdings of Invesco Macro Allocation Strategy Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Invesco Government & Agency Portfolio | 23.73% |
| Invesco Treasury Portfolio | 23.67% |
| U.S. Treasury Floating Rate Notes | 15.19% |
| U.S. Treasury Floating Rate Notes | 14.59% |
| Invesco US Dollar Liquidity Portfolio | 11.48% |
| Invesco Short Term Treasury ETF | 4.11% |
| Invesco Private Prime Fund | 0.00% |
| Invesco Private Government Fund | 0.00% |
GMSDX Portfolio Allocation
Asset-class allocation of Invesco Macro Allocation Strategy Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Cash & Equivalents | 58.9% |
| Fixed Income | 29.8% |
| Equity | 4.1% |
| Derivatives | 1.6% |
| Real Estate | 0.4% |
GMSDX Performance
Total returns for GMSDX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 0.5% |
| 3 years (annualised) | -1.1% |
| 5 years (annualised) | -0.0% |
GMSDX Risk Information
Risk metrics for GMSDX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 3.5%
GMSDX Costs and Fees
GMSDX costs about $147 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.47%
- Gross expense ratio: 1.76%
- Portfolio turnover: 76%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
GMSDX Cashflows
Over the 12 months to 2025-01, Invesco Macro Allocation Strategy Fund had net inflows of $14.77M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2025-01 | −$517.61K |
| 2024-12 | $13.16M |
| 2024-11 | $555.70K |
| 2024-10 | −$24.54K |
| 2024-09 | −$62.63K |
| 2024-08 | $309.98K |
GMSDX Debt Constituents
Largest debt holdings of Invesco Macro Allocation Strategy Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| U.S. Treasury Floating Rate Notes | 15.19% |
| U.S. Treasury Floating Rate Notes | 14.59% |
GMSDX Prospectus and SEC Filings
Official Invesco Macro Allocation Strategy Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2025-02-28
- Prospectus (485BPOS) — filed 2024-02-27
- Prospectus (485BPOS) — filed 2023-02-28
- Portfolio holdings (N-PORT) — filed 2025-04-01
- Portfolio holdings (N-PORT) — filed 2024-12-30
- Portfolio holdings (N-PORT) — filed 2024-09-30
- Annual census (N-CEN) — filed 2025-01-14
- Annual census (N-CEN) — filed 2024-01-16
Related Funds
Other Alternative 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.