Invesco Short Term Municipal Fund Class A is an open-ended mutual fund focused on providing tax-free income through investments in short-term municipal securities. Its primary objective is to generate income that is generally exempt from federal personal income taxes by allocating at least 80% of assets to high-quality, investment-grade municipal bonds issued by U.S. states, their political subdivisions, and territories. Typical holdings include municipal bonds, notes, tax-exempt commercial paper, and interests in municipal leases, with a dollar-weighted average effective maturity of two years or less. The fund’s short-duration profile helps reduce interest rate sensitivity and volatility relative to longer-term municipal strategies, appealing to those seeking stability and risk management in fixed income. Monthly distributions, a competitive yield, and a broad, diversified portfolio reflect its role as a source of capital preservation and efficient tax-advantaged income for investors managing short-term liquidity needs or pursuing low-volatility exposure to municipal debt markets. Managed by an experienced team, the fund leverages Invesco’s scale and research to maintain consistent access to diverse bond issues across the United States.
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