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Summary
- Invesco Short Term Municipal Fund Class A shares at net asset value (NAV) underperformed its style-specific index, the S&P Municipal Bond Short Index.
- Relying on our size and experience, we seek to identify the best opportunities to achieve potentially better outcomes for shareholders.
- In September, the US Federal Reserve (Fed) made its first rate cut of the year, lowering the federal funds rate by 0.25%.
- We believe st…
Summary
- Invesco Short Term Municipal Fund Class A shares at net asset value (NAV) underperformed its style-specific index, the S&P Municipal Bond Short Index.
- Relying on our size and experience, we seek to identify the best opportunities to achieve potentially better outcomes for shareholders.
- In September, the US Federal Reserve (Fed) made its first rate cut of the year, lowering the federal funds rate by 0.25%.
- We believe state and municipal budgets remain healthy.
- Looking ahead, we see opportunities in the municipal bond market.
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Key takeaways
1 Fund performance
Invesco Short Term Municipal Fund Class A shares (ORSTX) at net asset value (NAV) underperformed its style-specific index, the S&P Municipal Bond Short Index.
2 Seeking attractive opportunities through collaborative
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Quick Insights
ORSTX maintains a constructive duration outlook, utilizing a barbell strategy with VRDNs and short call premium coupon bonds, and seeks opportunities to extend duration when appropriate.
The fund is overweight revenue bonds, with largest exposures in hospital, public power, and multi-family housing sectors, and maintains a positive view on municipal credit fundamentals.
Hospital and public power bonds, longer-duration holdings, and AAA/AA selection contributed positively, while overweighting bonds under one year and IDR/PCR bonds detracted from performance.