MS-HYS-SUP-062813
Summary and Statutory Prospectus Supplement dated June 28, 2013
The purpose of this supplement is to provide you with changes to the current Summary and Statutory
Prospectuses for Class A, B, C and Y Shares of the Fund listed below:
Invesco High Yield Securities Fund
Following meetings held in October and December, 2012, the Board of Trustees of the Invesco Funds
have unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to
which Invesco High Yield Securities Fund, a series portfolio of AIM Investment Securities Funds
(Invesco Investment Securities Funds) (the “Target Fund”) would transfer all of its assets and
liabilities to Invesco High Yield Fund, a series portfolio of AIM Investment Securities Funds
(Invesco Investment Securities Funds) (the “Acquiring Fund”) in exchange for shares of the
Acquiring Fund that would be distributed to Target Fund shareholders:
The Agreement requires approval by the Target Fund shareholders and will be submitted to the
shareholders for their consideration at a meeting to be held in or around July 2013. If the
Agreement is approved by shareholders of the Target Fund and certain conditions required by the
Agreement are satisfied, the reorganization is expected to be consummated shortly thereafter. Upon
closing of the reorganization, shareholders of the Target Fund will receive a corresponding class
of shares of the Acquiring Fund in exchange for their shares of the Target Fund, and the Target
Fund will liquidate and cease operations.
A combined Proxy Statement/Prospectus was sent to shareholders of the Target Fund to seek their
approval of the Agreement, which includes a full discussion of the reorganization and the factors
the Board of Trustees considered in approving the Agreement.
The Target Fund has limited public sales of its shares to new investors, effective as of the open
of business on May 31, 2013. All shareholders who have invested in the Target Fund prior to May 31,
2013 and remain invested in the Fund may continue to make additional investments. Investors should
note that the Fund reserves the right to refuse any order that might disrupt the efficient
management of the Fund.
MS-HYS -SUP-1 062813
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Summary Prospectus
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June 28, 2013
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Invesco High Yield Securities
Fund
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Class: A (HYLAX),
B (HYLBX), C (HYLCX), Y (HYLDX)
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Before you invest, you may want to review the Fund’s
prospectus, which contains more information about the Fund and
its risks. You can find the Fund’s prospectus and other
information about the Fund online at www.invesco.com/prospectus.
You can also get this information at no cost by calling (800)
959-4246 or by sending an
e-mail
request to ProspectusRequest@invesco.com. The Fund’s
prospectus and statement of additional information, both dated
June 28, 2013, are incorporated by reference into this
Summary Prospectus and may be obtained, free of charge, at the
Web site, phone number or
e-mail
address noted above.
Investment
Objectives
The Fund’s primary investment objective is to earn a high
level of current income. As a secondary objective, the Fund
seeks capital appreciation but only to the extent consistent
with its primary objective.
Fees
and Expenses of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in the Invesco Funds.
More information about these and other discounts is available
from your financial professional and in the section
“Shareholder Account Information—Initial Sales Charges
(Class A Shares Only)” on
page A-3
of the prospectus and the section “Purchase, Redemption and
Pricing of Shares—Purchase and Redemption of Shares”
on
page L-1
of the statement of additional information (SAI).
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Shareholder Fees
(fees paid directly from your
investment)
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Class:
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A
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B
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C
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Y
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Maximum Sales Charge (Load) Imposed on Purchases (as a
percentage of offering price)
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4.25
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%
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None
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None
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None
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Maximum Deferred Sales Charge (Load) (as a percentage of
original purchase price or redemption proceeds, whichever is
less)
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None
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5.00
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%
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1.00
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%
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None
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Annual Fund Operating Expenses
(expenses that you pay
each year as a percentage of the value of your investment)
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Class:
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A
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B
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C
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Y
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Management Fees
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0.42
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%
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0.42
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%
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0.42
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%
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0.42
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%
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Distribution
and/or
Service (12b-1) Fees
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0.25
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0.75
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0.85
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None
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Other
Expenses
1
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0.60
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0.60
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0.60
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0.60
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Total Annual Fund Operating
Expenses
1
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1.27
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1.77
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1.87
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1.02
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1
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“Other Expenses” and “Total Annual Fund Operating
Expenses” have been restated to reflect current fees.
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Example.
This Example is intended to help you
compare the cost of investing in the Fund with the cost of
investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the
time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s
operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs
would be:
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1 Year
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3 Years
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5 Years
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10 Years
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Class A
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$
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549
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$
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811
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$
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1,092
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$
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1,894
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Class B
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$
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680
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$
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857
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$
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1,159
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$
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1,952
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Class C
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$
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290
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$
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588
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$
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1,011
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$
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2,190
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Class Y
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$
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104
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$
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325
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$
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563
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$
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1,248
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You would pay the following expenses if you did not redeem your
shares:
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1 Year
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3 Years
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5 Years
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10 Years
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Class A
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$
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549
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$
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811
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$
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1,092
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$
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1,894
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Class B
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$
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180
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$
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557
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$
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959
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$
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1,952
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Class C
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$
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190
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$
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588
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$
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1,011
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$
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2,190
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Class Y
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$
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104
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$
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325
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$
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563
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$
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1,248
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Portfolio Turnover.
The Fund pays transaction costs,
such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may
result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 54% of the average value of its
portfolio.
Principal
Investment Strategies of the Fund
Under normal circumstances, the Fund will invest in a portfolio
of high-yielding, high-risk bonds and other income securities,
such as convertible securities and preferred stock. The Fund
invests, under normal circumstances, at least 80% of its net
assets at the time of investment (plus any borrowings for
investment purposes) in fixed-income securities (including zero
coupon securities) rated below Baa by Moody’s Investors
Service, Inc. (Moody’s) or below BBB by
Standard & Poor’s Rating Group (S&P), or in
non-rated securities considered by the Adviser to be appropriate
investments for the Fund. The Fund will principally invest in
junk bonds rated B or above by a nationally-recognized
statistical rating organization (NRSRO) or deemed to be of
comparable quality by the portfolio managers. Such securities
may also include Rule 144A securities, which are subject to
resale restrictions. The Fund may also use derivative
instruments as discussed below. These derivative instruments
will be counted toward the 80% policy discussed above to the
extent they have economic characteristics similar to the
securities included within that policy. Securities rated
1 Invesco
High Yield Securities Fund
MS-HYS-SUMPRO-1
below Baa or BBB are commonly known as junk bonds. There are no
minimum quality ratings for investments, and as such the Fund
may invest in securities which no longer make payments of
interest or principal, including defaulted securities.
In selecting securities for the Fund’s portfolio, the
Adviser focuses on securities that it believes have favorable
prospects for high current income and the possibility of growth
of capital. Before purchasing securities for the Fund, the
Adviser may conduct a
bottom-up
fundamental analysis of an issuer that involves an evaluation by
a team of credit analysts of an issuer’s financial
condition. The fundamental analysis is supplemented by
(i) an ongoing review of the securities’ relative
value compared with other similar securities, and (ii) a
top-down analysis of sector and macro-economic trends.
The Adviser attempts to control the Fund’s risk by
(i) limiting the portfolio’s assets that are invested
in any one security, and (ii) diversifying the
portfolio’s holdings over a number of different industries.
The Adviser will consider selling a security if (1) there
appears to be deterioration in a security’s risk profile,
or (2) it determines that other securities offer better
value.
The Fund may invest in securities of foreign issuers, including
issuers located in emerging market or developing countries,
which securities may be denominated in U.S. dollars or in
currencies other than U.S. dollars. The Fund will limit its
investments in any
non-U.S.
dollar denominated securities to 30% of its assets.
The Fund may invest up to 20% of its assets in public bank loans
made by banks or other financial institutions. Public bank loans
are privately negotiated loans for which information about the
issuer has been made publicly available. Public bank loans are
not registered under the Securities Act of 1933, as amended, and
are not publicly traded.
The remaining 20% of the Fund’s assets may be invested in
securities rated Baa or BBB or higher (or, if not rated,
determined to be of comparable quality when the Adviser believes
that such securities may produce attractive yields).
The Fund can invest in derivative instruments, including forward
foreign currency contracts and swap contracts.
The Fund can use forward foreign currency contracts to hedge
against adverse movements in the foreign currencies in which
portfolio securities are denominated.
The Fund can use swap contracts, including credit default swaps,
to create long or short exposure to corporate or sovereign debt
securities.
The Fund can also use swap contracts, including credit default
index swaps, to hedge credit risk or take a position on a basket
of credit entities.
Principal
Risks of Investing in the Fund
As with any mutual fund investment, loss of money is a risk of
investing. An investment in the Fund is not a deposit in a bank
and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. The risks
associated with an investment in the Fund can increase during
times of significant market volatility. The principal risks of
investing in the Fund are:
Debt Securities Risk.
The Fund may invest in debt
securities that are affected by changing interest rates and
changes in their effective maturities and credit quality.
Lower Rated Securities (Junk Bonds).
Junk bonds are
subject to greater risk of loss of income and principal than
higher rated securities and may have a higher incidence of
default than higher-rated securities. The prices of junk bonds
are likely to be more sensitive to adverse economic changes or
individual corporate developments than higher rated securities.
Developing/Emerging Markets Securities Risk.
The prices
of securities issued by foreign companies and governments
located in developing/emerging markets countries may be affected
more negatively by inflation, devaluation of their currencies,
higher transaction costs, delays in settlement, adverse
political developments, the introduction of capital controls,
withholding taxes, nationalization of private assets,
expropriation, social unrest, war or lack of timely information
than those in developed countries.
Foreign Securities Risks.
The risks of investing in
securities of foreign issuers, including emerging market
issuers, can include fluctuations in foreign currencies, foreign
currency exchange controls, political and economic instability,
differences in securities regulation and trading, and foreign
taxation issues.
Public Bank Loans.
Certain public bank loans are
illiquid, meaning the Fund may not be able to sell them quickly
at a fair price. Illiquid securities are also difficult to
value. Public bank loans are subject to the risk of default in
the payment of interest or principal on a loan, which will
result in a reduction of income to the Fund, and a potential
decrease in the Fund’s net asset value. Public bank loans
present a greater degree of investment risk due to the fact that
the cash flow or other property of the borrower securing the
bank loan may be insufficient to meet scheduled payments.
Derivatives Risk.
The performance of derivative
instruments is tied to the performance of an underlying
currency, security, index, commodity or other instrument. In
addition to risks relating to their underlying instruments, the
use of derivatives may include other, possibly greater, risks.
Derivatives involve costs, may be volatile, and may involve a
small initial investment relative to the risk assumed. Risks
associated with the use of derivatives may include counterparty,
leverage, correlation, liquidity, tax, market, interest rate and
management risks. Derivatives may also be more difficult to
purchase, sell or value than other investments. The Fund may
lose more than the cash amount invested on investments in
derivatives. Investors should bear in mind that, while the Fund
intends to use derivative strategies, it is not obligated to
actively engage in these transactions, generally or in any
particular kind of derivative, if the Adviser elects not to do
so due to availability, cost, market conditions or other factors.
Convertible Securities Risk.
The Fund may own convertible
securities, the value of which may be affected by market
interest rates, the risk that the issuer will default, the value
of the underlying stock or the right of the issuer to buy back
the convertible securities.
Defaulted Securities Risk.
Defaulted securities involve
the substantial risk that principal will not be repaid.
Defaulted securities and any securities received in an exchange
for such securities may be subject to restrictions on resale.
Liquidity Risk.
The Fund may hold illiquid securities
that it may be unable to sell at the preferred time or price and
could lose its entire investment in such securities.
Rule 144A securities could have the effect of increasing the
level of Fund illiquidity to the extent the Fund may be unable
to find qualified institutional buyers interested in purchasing
the securities.
Management Risk.
The investment techniques and risk
analysis used by the Fund’s portfolio managers may not
produce the desired results.
Market Risk.
The prices of and the income generated by
the Fund’s securities may decline in response to, among
other things, investor sentiment; general economic and market
conditions; regional or global instability; and currency and
interest rate fluctuations.
Preferred Securities Risk.
There are special risks
associated with investing in preferred securities. Preferred
securities may include provisions that permit the issuer, in its
discretion, to defer or omit distributions for a certain period
of time. If the Fund owns a security that is deferring or
omitting its distributions, the Fund may be required to report
the distribution on its tax returns, even though it may not have
received this income. Further, preferred securities may lose
substantial value due to the omission or deferment of dividend
payments.
Zero Coupon or Pay-In-Kind Securities Risk.
The value,
interest rates, and liquidity of non-cash paying instruments,
such as zero coupon and pay-in-kind securities, are subject to
greater fluctuation than other types of securities.
Performance
Information
The bar chart and performance table provide an indication of the
risks of investing in the Fund. The bar chart shows changes in
the performance of the Fund from year to year as of
December 31. The performance table compares the Fund’s
and Morgan Stanley High Yield Securities Inc.’s (the
predecessor fund) performance to that of a broad-based
securities market/
2 Invesco
High Yield Securities Fund
style specific benchmark and a peer group benchmark comprised of
funds with investment objectives and strategies similar to those
of the Fund. For more information on the benchmarks used see the
“Benchmark Descriptions” section in the prospectus.
The Fund’s and the predecessor fund’s past performance
(before and after taxes) is not necessarily an indication of its
future performance.
The returns shown prior to June 1, 2010 are those of the
Class A, Class B, Class C and Class I shares
of the predecessor fund. The predecessor fund was advised by
Morgan Stanley Investment Advisors Inc. Class A,
Class B, Class C and Class I shares of the
predecessor fund were reorganized into Class A,
Class B, Class C and Class Y shares,
respectively, of the Fund on June 1, 2010. Class A,
Class B, Class C and Class Y shares’ returns
of the Fund will be different from the predecessor fund as they
have different expenses. Performance for Class A and
Class B shares has been restated to reflect the Fund’s
applicable sales charge. Performance for Class B shares assumes
conversion to Class A shares eight years after the start of the
performance period.
Updated performance information is available on the Fund’s
Web site at www.invesco.com/us.
Annual Total
Returns
The bar chart does not reflect sales loads. If it did, the
annual total returns shown would be lower.
Class A shares
year-to-date
(ended March 28, 2013): 2.41%
Best Quarter (ended June 30, 2009): 17.35%
Worst Quarter (ended December 31, 2008): -15.05%
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Average Annual Total Returns
(for the periods ended
December 31, 2012)
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1
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5
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10
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Year
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Years
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Years
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Class A shares: Inception (09/26/1979)
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Return Before Taxes
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13.75
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%
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7.80
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%
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9.06
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%
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Return After Taxes on Distributions
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11.41
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5.01
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6.31
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Return After Taxes on Distributions and Sale of Fund Shares
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8.83
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4.92
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6.13
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Class B shares: Inception (07/28/1997)
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13.24
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7.95
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8.99
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Class C shares: Inception (07/28/1997)
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17.07
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8.08
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8.80
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Class Y shares: Inception (09/26/1979)
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19.03
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9.07
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9.68
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Barclays U.S. Corporate High Yield 2% Issuer Cap Index (reflects
no deductions for fees, expenses or taxes)
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15.78
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10.45
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10.60
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Lipper High Current Yield Bond Funds Index
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15.40
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7.73
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8.89
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After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect
the impact of state and local taxes. Actual after-tax returns
depend on an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Class A shares
only and after-tax returns for other classes will vary.
Management
of the Fund
Investment Adviser: Invesco Advisers, Inc. (the Adviser).
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Portfolio Managers
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Title
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Length of Service on the Fund
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Darren Hughes
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Portfolio Manager
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2010
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Scott Roberts
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Portfolio Manager
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2010
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Purchase
and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any
business day through your financial adviser, through our Web
site at www.invesco.com/us, by mail to Invesco Investment
Services, Inc., P.O. Box 219078, Kansas City, MO
64121-9078,
or by telephone at
800-959-4246.
New or additional investments in Class B shares are not
permitted. The minimum investments for Class A, C and Y
shares for Fund accounts are as follows:
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Initial Investment
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Additional Investments
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Type of Account
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Per Fund
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Per Fund
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Asset or fee-based accounts managed by your financial adviser
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None
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None
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Employer Sponsored Retirement and Benefit Plans and Employer
Sponsored IRAs
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None
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None
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IRAs and Coverdell ESAs if the new investor is purchasing shares
through a systematic purchase plan
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$25
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$25
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All other types of accounts if the investor is purchasing shares
through a systematic purchase plan
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50
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50
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IRAs and Coverdell ESAs
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250
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25
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All other accounts
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1,000
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50
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Tax
Information
The Fund’s distributions are generally taxable to you as
ordinary income, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions generally will be
taxed when withdrawn from the tax-deferred account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund and the
Fund’s distributor or its related companies may pay the
intermediary for the sale of Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediary’s Web site for more
information.
3 Invesco
High Yield Securities Fund