Invesco Expands Alternatives Lineup with Introduction of Invesco MLP Fund

ATLANTA, Sept. 3, 2014 /PRNewswire/ -- Invesco US today announced the launch of the Invesco MLP Fund, an open-end, actively managed alternative fund that utilizes a top-down and bottom-up investment process in an effort to identify better quality master limited partnerships (MLPs) trading at attractive relative values.  The fund seeks to provide capital appreciation and secondarily income. The addition to Invesco's product line-up leverages the global reach and experience the firm has in managing real assets through the Invesco Real Estate team. 

"The Invesco MLP Fund will complement our existing leading investment capabilities in real estate and infrastructure which, among other offerings in our broad product range, are important components of a diversified portfolio," said Joe Rodriguez, lead portfolio manager for Invesco MLP Fund and Head of Global Securities for Invesco Real Estate, which oversees approximately $61.5 billion* in real assets.  "Our investment philosophy is based on two core principles: we strive to maximize predictability and consistency of investment returns and seek to minimize risk through strict attention to portfolio design."

Focusing on long-term assets and using the same valuation techniques used with real estate, the team will be looking to identify publicly traded equity securities of MLPs operating in the most attractive and diverse hydrocarbon basins in the US, with higher quality assets, strong management teams with aligned interests and sound balance sheets that reflect stable cash flows. While the team will begin with an investible universe of approximately 130 MLP companies, it will carefully filter for those that meet their defined target liquidity, risk and diversification profile.

"We've seen a meaningful uptick in US crude oil and natural gas production as a result of well-known technological advances in the extraction of these hydrocarbons," Mr. Rodriguez said. "Given this new energy boom, significant infrastructure investments are needed to support the movement and refinement of oil and gas from its extraction point to the end user. As a result, the number of available MLP investments has grown significantly, doubling in just seven years."

The management team began its expansion beyond managing real estate specific mutual funds earlier in 2014 with the launch of the Invesco Global Infrastructure Fund, which can invest up to 20% in MLPs, using the same focus on utilizing local market expertise to evaluate potential investments with stable cash flows derived from tangible long-lived assets. The team considers it a seamless transition from commercial real estate to infrastructure, including MLPs, because of such commonalities as asset characteristics and valuation techniques.

"With our 20 offices around the world and 236 dedicated investment research professionals focused on understanding local economic drivers and future supply/demand trends, we believe Invesco Real Estate is uniquely positioned to perform the type of robust fundamental research needed to identify and underwrite infrastructure investments," Rodriguez said. "Our Invesco Real Estate headquarters in Dallas, TX, is particularly beneficial for midstream infrastructure MLP investing given a vast majority of those companies are also headquartered in Texas."

According to Walter Davis, Invesco's Alternatives Investment Strategist, "Alternative investment funds can help investors build a well-diversified portfolio with the potential for an attractive return-risk profile. Furthermore, alternative assets such as MLPs, infrastructure and real estate investment trusts (REITs) may help clients hedge against inflation, generate current income, and achieve an attractive level of return."

*As of June 30, 2014. Real assets are physical/tangible assets that have intrinsic value like real estate investment trusts and direct property.

About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. It is an indirect, wholly owned subsidiary of Invesco Ltd.

About Invesco Real Estate
Established in 1983, Invesco Real Estate manages private real estate, real estate securities and real estate debt. With more than 380 employees and 20 offices in 14 countries, our professionals focus on top-down market and property type fundamentals combined with bottom-up local market intelligence. Senior members of the management team have worked together for more than 25 years, contributing to the consistent implementation of Invesco's investment strategy and resulting performance. Additional information is available at www.invescorealestate.com.

NOT FDIC INSURED, MAY LOSE VALUE, OFFER NO BANK GUARANTEE

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisers for a prospectus/summary prospectus or visit invesco.com/fundprospectus.

About Risk
Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate. You can lose money.

Infrastructure-Related Companies Risk: Infrastructure-related companies are subject to a variety of industry specific risk factors that may adversely affect their business or operations, including costs associated with environmental, government and other regulations, high interest costs, high leverage, economic slowdown, increased competition, commodity prices, unfavorable tax laws or accounting policies, etc. They are also affected by environmental damage, difficulty raising adequate financing, increased susceptibility to terrorist acts or political actions and general market sentiment.

MLP Risk: Although the characteristics of MLPs closely resemble a traditional limited partnership, a major difference is that MLPs may trade on a public exchange or in the over-the-counter market. Although this provides a certain amount of liquidity, MLP interests may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities. The risks of investing in an MLP are similar to those of investing in a partnership and include more flexible governance structures, which could result in less protection for investors than investments in a corporation. MLPs are generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide attractive returns. Additionally, if the Fund were to invest more than 25% of its net assets in MLPs this could cause the Fund to lose its status as regulated investment company under Subchapter M of the Code.

MLP Tax Risk: A change in current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being treated as a corporation for US federal income tax purposes. This would result in such MLP being required to pay U.S. federal income tax on its taxable income and could result in a reduction of the value of the MLP.

The Funds are non-diversified and can invest a greater portion of its assets in a small number of issuers or a single issuer. A change in the value of the issuer could affect the value of the Funds more than if they were diversified funds.

The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

Each fund is subject to specific risks.  Please see the prospectus for more information regarding the risks associated with an investment in each fund.

Diversification does not guarantee a profit or eliminate the loss of risk.

—Invesco—

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SOURCE Invesco

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