INVESCO BALANCED-RISK ALLOCATION FUND
Fund
ABRZX
Price as of:
$7.76
+ $0.04
+ 0.52%
Primary Theme
fund company
Name
As of 12/20/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
2.7%
1 yr return
2.9%
3 Yr Avg Return
-2.4%
5 Yr Avg Return
2.0%
Net Assets
$1.32 B
Holdings in Top 10
87.0%
52 WEEK LOW AND HIGH
$7.7
N/A
N/A
Expenses
OPERATING FEES
Expense Ratio 1.43%
SALES FEES
Front Load 5.50%
Deferred Load N/A
TRADING FEES
Turnover N/A
Redemption Fee N/A
Min Investment
Standard (Taxable)
$1,000
IRA
$250
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 12/20/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
ABRZX - Profile
Distributions
- YTD Total Return 2.7%
- 3 Yr Annualized Total Return -2.4%
- 5 Yr Annualized Total Return 2.0%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio -1.26%
- Dividend Yield 13.4%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameINVESCO BALANCED-RISK ALLOCATION FUND
-
Fund Family NameInvesco
-
Inception DateJun 02, 2009
-
Shares OutstandingN/A
-
Share ClassA
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerMark Ahnrud
Fund Description
The Fund’s investment strategy is designed to provide capital loss protection during down markets by investing across multiple macro factors. Under normal market conditions, the Fund’s portfolio management team allocates across three macro factors: growth, defensive and real return, such that no one macro factor drives the Fund’s performance. The Fund’s exposure to these three macro factors will be achieved primarily through investments in derivative instruments (generally having aggregate notional exposure exceeding 65% of the Fund’s net assets), including but not limited to futures, options, currency forward contracts and swap agreements. The portfolio managers manage the Fund’s 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 the Fund’s 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 the Fund’s portfolio risk in a variety of market conditions.
The portfolio managers implement their investment decisions primarily through the use of derivatives and other investments that create leverage. The Fund uses derivatives and other leveraged instruments to create and adjust exposures to the three macro factors. The portfolio managers make these adjustments to balance risk exposure 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 macro factors than investing in more traditional assets such as stocks and bonds would allow. The Fund may hold long and short positions in derivatives and in investments in each of the three macro factors; however, the Fund will typically maintain net long exposure to each macro factor, such that the Fund is expected to benefit from general price appreciation of
investments in that macro factor. The Fund’s use of derivatives and the leveraged investment exposure created by its use of derivatives are expected to be significant and greater than most mutual funds. The Fund may use quantitative models as part of the investment selection process.
The Fund’s 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 leverage, including futures contracts, options, swaps and commodity-linked notes. Volatility measures the range of returns of a security, fund, index or other investment, 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. 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 a leveraging effect. Leveraging tends to magnify, sometimes significantly depending on the amount of leverage used, the effect of any increase or decrease in the Fund’s exposure to a macro factor and may cause the Fund’s net asset value to be more volatile than a fund that does not use leverage. For example, if the Fund gains exposure to a specific macro factor 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 Adviser’s investment process has three steps. The first step involves investment selection within the three macro factors. The portfolio managers select investments to represent each of the three macro factors from a universe of over fifty investments. The selection process (1) evaluates a particular investment’s 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 macro factor and the investments within each macro factor selected in the first step to construct a portfolio that they believe is risk-balanced across the three macro factors. Periodically, the management team re-estimates the risk contributed by each macro factor 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 macro factors and investments, considering the following factors: valuation, economic environment and historic price movements. Regarding valuation, the portfolio managers evaluate whether a macro factor and investments in that macro factor 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 a macro factor and related investments. Lastly, the portfolio managers assess the impact of historic price movements for each macro factor and related investments on likely future returns.
Utilizing the results from the analysis described above, the portfolio managers determine tactical short-term over-weight positions (incurring additional exposure relative to the strategic allocation) and under-weight positions (incurring less exposure relative to the strategic allocation) for the macro factors 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.
The Fund’s growth exposure will be achieved primarily through investments in derivatives that track equity indices comprised of shares of companies in developed and/or emerging market countries, including equity indices that emphasize exposure to companies associated with certain characteristics, known as style factors, including high dividend, quality, value, growth, low volatility, size (large-, mid- or small-cap) and momentum. In addition, the Fund may invest directly in shares of such companies and in exchange-traded funds (ETFs) that provide equity exposure, including ETFs that track factor-based indices that emphasize the style factors noted above. The Fund may also buy and write (sell) put and call options on equities, equity indices and ETFs, including in combination, to adjust the Fund’s equity exposure or to generate income. Additionally, the Fund can use currency forward contracts to hedge against the risk that the value of the foreign currencies in which its equity investments are denominated will depreciate against the U.S. dollar.
The Fund’s defensive exposure will be achieved primarily through derivatives that offer exposure to the debt or credit of issuers in developed and/or emerging markets that are rated investment grade or are 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 Fund’s real return exposure will be achieved primarily through investments in commodity futures and swaps, commodity related ETFs and exchange-traded notes (ETNs) and commodity-linked notes, some or all of which will be owned through Invesco Cayman Commodity Fund I 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 related ETFs and ETNs and commodity-linked notes. 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 investments 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 Subsidiary’s 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 a substantial portion 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 Fund’s obligations under derivative transactions, or for cash management purposes. The larger the value of the Fund’s 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.
ABRZX - Performance
Return Ranking - Trailing
| Period | ABRZX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.7% | -9.2% | 34.3% | 82.33% |
| 1 Yr | 2.9% | -8.3% | 35.4% | 87.91% |
| 3 Yr | -2.4%* | -18.0% | 12.7% | 86.38% |
| 5 Yr | 2.0%* | -12.7% | 22.0% | 85.64% |
| 10 Yr | 2.5%* | -5.8% | 9.1% | 78.83% |
* Annualized
Return Ranking - Calendar
| Period | ABRZX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 3.6% | -18.9% | 60.2% | 75.70% |
| 2022 | -15.0% | -48.5% | 0.1% | 35.21% |
| 2021 | -13.5% | -19.0% | 48.3% | 97.64% |
| 2020 | 7.9% | -16.5% | 52.8% | 37.13% |
| 2019 | 3.0% | -8.5% | 26.6% | 89.34% |
Total Return Ranking - Trailing
| Period | ABRZX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.7% | -9.2% | 34.3% | 82.33% |
| 1 Yr | 2.9% | -8.3% | 35.4% | 87.91% |
| 3 Yr | -2.4%* | -18.0% | 12.7% | 86.38% |
| 5 Yr | 2.0%* | -12.7% | 22.0% | 85.64% |
| 10 Yr | 2.5%* | -5.8% | 9.1% | 78.83% |
* Annualized
Total Return Ranking - Calendar
| Period | ABRZX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 6.0% | -11.7% | 61.8% | 74.77% |
| 2022 | -15.0% | -48.5% | 4.6% | 58.22% |
| 2021 | 9.2% | -14.2% | 48.3% | 62.74% |
| 2020 | 9.2% | -11.7% | 77.4% | 44.06% |
| 2019 | 14.7% | -3.9% | 28.4% | 46.19% |
NAV & Total Return History
ABRZX - Holdings
Concentration Analysis
| ABRZX | Category Low | Category High | ABRZX % Rank | |
|---|---|---|---|---|
| Net Assets | 1.32 B | 2.31 M | 12 B | 10.65% |
| Number of Holdings | 155 | 2 | 2477 | 23.15% |
| Net Assets in Top 10 | 1.06 B | 1.55 M | 9.57 B | 14.35% |
| Weighting of Top 10 | 87.04% | 20.0% | 105.1% | 28.24% |
Top 10 Holdings
- Invesco Treasury Obligations Portfolio, Institutional Class 27.60%
- Invesco Government Agency Portfolio, Institutional Class 16.34%
- U.S. Treasury Floating Rate Notes 8.39%
- U.S. Treasury Floating Rate Notes 8.24%
- U.S. Treasury Floating Rate Notes 7.64%
- Invesco Treasury Portfolio, Institutional Class 7.37%
- Invesco US Dollar Liquidity Portfolio, Institutional Class 7.27%
- Royal Bank of Canada 1.60%
- Canadian Imperial Bank of Commerce 1.32%
- U.S. Treasury Floating Rate Notes 1.27%
Asset Allocation
| Weighting | Return Low | Return High | ABRZX % Rank | |
|---|---|---|---|---|
| Cash | 68.32% | -33.22% | 90.14% | 4.63% |
| Bonds | 30.48% | 0.00% | 106.59% | 24.07% |
| Other | 1.20% | -29.71% | 154.73% | 14.35% |
| Stocks | 0.00% | 0.00% | 133.08% | 97.69% |
| Preferred Stocks | 0.00% | -0.16% | 5.36% | 52.78% |
| Convertible Bonds | 0.00% | 0.00% | 8.92% | 74.54% |
Bond Sector Breakdown
| Weighting | Return Low | Return High | ABRZX % Rank | |
|---|---|---|---|---|
| Cash & Equivalents | 58.58% | 0.00% | 89.61% | 4.63% |
| Government | 52.60% | 0.00% | 99.78% | 24.54% |
| Corporate | 17.44% | 0.00% | 95.17% | 26.39% |
| Derivative | 1.20% | -19.74% | 154.73% | 12.96% |
| Securitized | 0.00% | 0.00% | 52.99% | 74.07% |
| Municipal | 0.00% | 0.00% | 19.13% | 67.13% |
Bond Geographic Breakdown
| Weighting | Return Low | Return High | ABRZX % Rank | |
|---|---|---|---|---|
| US | 30.48% | 0.00% | 92.67% | 16.67% |
| Non US | 0.00% | 0.00% | 22.55% | 56.94% |
ABRZX - Expenses
Operational Fees
| ABRZX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.43% | 0.45% | 10.24% | 64.35% |
| Management Fee | 0.90% | 0.00% | 1.50% | 51.39% |
| 12b-1 Fee | 0.25% | 0.00% | 1.00% | 48.25% |
| Administrative Fee | N/A | 0.01% | 0.70% | N/A |
Sales Fees
| ABRZX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | 5.50% | 2.50% | 5.75% | 51.35% |
| Deferred Load | N/A | 1.00% | 1.00% | N/A |
Trading Fees
| ABRZX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 0.50% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| ABRZX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | N/A | 1.75% | 441.00% | 43.38% |
ABRZX - Distributions
Dividend Yield Analysis
| ABRZX | Category Low | Category High | ABRZX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 13.42% | 0.00% | 24.95% | 34.72% |
Dividend Distribution Analysis
| ABRZX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Annual | Annual | Annual | Annual |
Net Income Ratio Analysis
| ABRZX | Category Low | Category High | ABRZX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | -1.26% | -2.01% | 13.72% | 93.52% |
Capital Gain Distribution Analysis
| ABRZX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 16, 2024 | $1.036 | OrdinaryDividend |
| Dec 15, 2023 | $0.189 | OrdinaryDividend |
| Dec 16, 2021 | $1.430 | OrdinaryDividend |
| Dec 16, 2021 | $0.741 | CapitalGainShortTerm |
| Dec 16, 2021 | $0.350 | CapitalGainLongTerm |
| Dec 11, 2020 | $0.132 | OrdinaryDividend |
| Dec 13, 2019 | $0.674 | OrdinaryDividend |
| Dec 13, 2019 | $0.198 | CapitalGainShortTerm |
| Dec 13, 2019 | $0.299 | CapitalGainLongTerm |
| Dec 13, 2017 | $0.347 | CapitalGainShortTerm |
| Dec 13, 2017 | $0.350 | CapitalGainLongTerm |
| Dec 13, 2016 | $0.189 | CapitalGainShortTerm |
| Dec 13, 2016 | $0.274 | CapitalGainLongTerm |
| Dec 13, 2016 | $0.412 | OrdinaryDividend |
| Dec 12, 2014 | $0.335 | CapitalGainShortTerm |
| Dec 12, 2014 | $0.323 | CapitalGainLongTerm |
| Dec 12, 2014 | $0.245 | OrdinaryDividend |
| Dec 13, 2013 | $0.515 | CapitalGainShortTerm |
| Dec 13, 2013 | $0.399 | CapitalGainLongTerm |
| Dec 07, 2012 | $0.211 | CapitalGainShortTerm |
| Dec 07, 2012 | $0.139 | CapitalGainLongTerm |
| Dec 07, 2012 | $0.290 | OrdinaryDividend |
| Dec 09, 2011 | $0.121 | CapitalGainLongTerm |
| Dec 09, 2011 | $0.335 | OrdinaryDividend |
| Dec 10, 2010 | $0.145 | CapitalGainShortTerm |
| Dec 10, 2010 | $0.057 | CapitalGainLongTerm |
| Dec 10, 2010 | $0.466 | OrdinaryDividend |
| Dec 11, 2009 | $0.209 | OrdinaryDividend |
| Dec 11, 2009 | $0.292 | CapitalGainShortTerm |
| Dec 11, 2009 | $0.052 | CapitalGainLongTerm |
ABRZX - Fund Manager Analysis
Managers
Mark Ahnrud
Start Date
Tenure
Tenure Rank
Jun 02, 2009
13.0
13.0%
Mark Ahnrud currently serves as a Portfolio Manager for Invesco's Global Asset Allocation team. Mark joined Invesco in 2000 and the Global Asset Allocation team in 2002. Mark began his investment career in 1985 and was a fixed income portfolio manager with Bank of America prior to joining Invesco. Mark received his BS in Finance and Investments from Babson College. He received his MBA from the Fuqua School of Business at Duke University with a concentration in Finance and Real Estate Investment. Mark holds the Chartered Financial Analyst designation.
Scott Wolle
Start Date
Tenure
Tenure Rank
Jun 02, 2009
13.0
13.0%
Scott Wolle is a portfolio manager and chief investment officer (CIO) of Invesco Global Asset Allocation. Mr. Wolle joined Invesco in 1999 and became affiliated with the Global Asset Allocation team in 2000. He began his investment management career in 1991 and was with Bank of America prior to joining Invesco. Mr. Wolle earned a Bachelor of Science in finance from Virginia Polytechnic Institute and State University, graduating magna cum laude. He earned a MBA from the Fuqua School of Business at Duke University where he earned the distinction of Fuqua Scholar. He is a CFA charterholder.
Christian Ulrich
Start Date
Tenure
Tenure Rank
Jun 02, 2009
13.0
13.0%
Christian Ulrich currently serves as a Portfolio Manager for the IGAA team. Christian joined Invesco in 2000 and the Global Asset Allocation team in 2009. Prior to affiliating as a Portfolio manager with IGAA team, Christian served as a client portfolio manager for Invesco Global Asset Management. Christian began his investment career in 1987 and was with Credit Suisse Group AG where he had assignments in Zurich, New York and London.Christian graduated from the KV Zurich Business School in Zurich, Switzerland, and holds the CFA designation.
Scott Hixon
Start Date
Tenure
Tenure Rank
Jun 02, 2009
13.0
13.0%
Scott Hixon joined Invesco in 1994 and became affiliated with the Global Asset Allocation team in 1997. He is responsible for the fundamental research, quantitative modeling and portfolio investment decisions for asset classes and currencies. Mr. Hixon began his investment management career in 1992 and was with SunTrust Bank prior to joining Invesco. He earned a Bachelor of Business Administration in finance, graduating magna cum aude from Georgia Southern University. He earned an M.B.A. in finance from Georgia State University. Mr. Hixon is a CFA charterholder.
Chris Devine
Start Date
Tenure
Tenure Rank
Jun 02, 2009
13.0
13.0%
Chris Devine joined Invesco in 1998 and became affiliated with the Global Asset Allocation team in January 2003. He is responsible for portfolio construction, risk management, trading and derivative management. He began his investment management career in 1996 and was with The Robinson-Humphrey Co. prior to joining Invesco. Mr. Devine earned a Bachelor of Arts degree in economics from Wake Forest University and a Master of Business Administration degree from the University of Georgia. He is a CFA charterholder.
John Burrello
Start Date
Tenure
Tenure Rank
Feb 28, 2022
0.25
0.3%
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.07 | 33.83 | 6.7 | 13.0 |