Invesco Aim announced today changes to the management strategy of AIM Limited Maturity Treasury Fund that will allow for more active management of the portfolio.
Since its inception on Dec. 15, 1987, AIM Limited Maturity Treasury Fund has invested principally in U.S. Treasury notes with stated maturities of two years at the time of purchase. The portfolio managers have maintained a laddered portfolio and each month have sold the U.S. Treasury notes that have reached one year to maturity and purchased new two-year U.S. Treasury notes.
Effective on or about Feb. 16, 2009, fund portfolio managers Brendan Gau and Scot Johnson of Invesco Worldwide Fixed Income will have the ability to purchase U.S. Treasury notes with remaining maturities of five years or less, while maintaining an average weighted maturity of three years or less. The ability to purchase U.S. Treasury notes with differing maturities is intended to provide managers with the flexibility to adapt to changing market and interest rate conditions while offering fund shareholders the potential to maintain price stability while maximizing total return.
About Invesco Aim
Invesco Aim is dedicated to building solutions for its clients with exceptional products and services through multiple investment management styles and a broad range of investment portfolios – mutual funds, exchange-traded funds, retirement products, separately managed accounts for high-net-worth and institutional investors, annuities, cash management, college savings plans and offshore products. For more information, visit www.invescoaim.com. Invesco Aimsm is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund’s prospectus for information on the fund’s subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high-net-worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
Interest Rate Risk – Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on specific characteristics of each bond. A measure investors commonly use to determine this sensitivity is called duration. The longer the duration of a particular bond, the greater is its price sensitivity to interest rate changes. Similarly, a longer duration portfolio of securities has greater price sensitivity. Duration is determined by a number of factors including coupon rate, whether the coupon is fixed or floating, time to maturity, call or put features, and various repayment features.
Reinvestment Risk – Reinvestment risk is the risk that a bond's cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond. If interest rates decline, the underlying bond may rise in value, but the cash flows received from that bond may have to be invested at a lower interest rate.
Active Trading Risk – The fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. If a fund does trade in this way, it may incur increased costs, which can lower the actual return of the fund. Active trading may also increase short term gains and losses, which may affect taxes that must be paid.
Management Risk – There is no guarantee that the investment techniques and risk analyses used by the fund's portfolio managers will produce the desired results.
Leverage Risk – If the fund borrows money to finance investments, it is engaging in a practice known as “leveraging.” Leveraging may result from ordinary borrowings, or may be inherent in the structure of certain fund investments such as derivatives. If the prices of those investments decrease, or if the cost of borrowing exceeds any increases in the prices of those investments, the net asset value of the fund's shares will decrease faster than if the fund had not used leverage. To repay borrowings, the fund may have to sell investments at a time and at a price that is unfavorable to the fund. Interest on borrowings is an expense the fund would not otherwise incur. There can be no assurance that the fund will use leverage or should the fund use leverage, that the fund's leverage strategy will be successful.
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Consider the investment objectives, risks, and charges and expenses carefully before investing. For this and other important information about any AIM fund, please obtain a prospectus from your financial advisor and read it carefully before investing.
Invesco Aim Distributors, Inc.