Invesco Ltd. is an American independent wealth management firm with a global presence in 20 countries. Invesco operates various brand names, including Invesco, Trimark and Invesco Perpetual. The company offers various investment strategies to investors that include mutual funds specializing in equity, fixed-income and alternative strategies. Invesco boasts a large number of mutual funds that have received high marks from Morningstar for their strong performance and consistent management.

Invesco Limited Term Municipal Income Fund Class A (ATFAX)

With $2.7 billion in assets under management (AUM), the Invesco Limited Term Municipal Income Fund Class A seeks federal tax-exempt current income by investing in municipal debt securities issued by local authorities throughout the United States. The fund focuses its holdings on maturity profiles between three and five years. It is most appropriate for investors with high-income tax brackets. About 90% of the fund's assets are invested in high-quality municipal bonds with credit ratings of A or above. The fund invests across a wide variety of states, with Texas and New York having large allocations. No single holding in the fund's portfolio has over 1% allocation. The fund has an average duration of 3.32 years and a 30-day SEC yield of 0.88%.

This resulted in a 10-year Sharpe ratio of 0.92. The fund has received a five-star overall and five- and 10-year rating, as well as a four-star rating for a three-year period in the municipal national short category. It has a net expense ratio of 0.61% and a load fee of 2.50%.

Invesco European Growth Fund Class Y (AEDYX)

The Invesco European Growth Fund Class Y has amassed $1.5 billion in AUM by investing in common stocks of companies located in Europe across different market capitalizations. The fund mainly focuses on stocks with strong fundamentals and increasing earnings growth. Financial services and consumer cyclical stocks have the largest weight in the fund's portfolio with about 44% allocation. In terms of geographic allocation, the United Kingdom has the biggest allocation of about 36%, while Swiss companies account for approximately 12% of the fund's assets. No single holding has more than 4% allocation, and the fund's top 10 holdings account for 24% of its assets.

The fund boasts one of the most experienced teams of highly capable portfolio managers with years of industry experience. From 2010 to 2015, the fund generated an average annual return of 7.11% and a standard deviation of 13.35%, resulting in a Sharpe ratio of 0.58. Morningstar has awarded the fund with a silver analyst rating and a five-star overall rating in the European stock category. The Invesco European Growth Fund Class Y charges a net expense ratio of 1.12% and has no load fees.

Invesco Income Allocation Fund Class Y (ALAYX)

The Invesco Income Allocation Fund Class Y is a fund of funds that primarily seeks current income and, to some extent, capital growth by investing in a mix of stocks and fixed-income securities. The fund typically targets 60 to 70% allocation to fixed-income securities and 30 to 40% to stocks. It invests in other Invesco mutual funds to construct the portfolio so it conforms to its investment objective. On the equity side, the fund's holdings are fairly well diversified, with no single sector of the U.S. economy accounting for more than 19%; real estate and consumer defensive stocks have a combined allocation of about 37%. The fund's bond portfolio primarily consists of investment-grade sovereign and corporate bonds.

From 2010 to 2015, the fund generated an average annual return of 6.01% and a standard deviation of 5.01%, producing a five-year Sharpe ratio of 1.18. Morningstar has awarded the fund with a five-star overall and five-year rating, as well as a four-star, three-year rating in the conservative allocation category. The fund has no load fees and charges a net expense ratio of 0.60%.

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