Fund Evaluator:

Invesco Limited Term Municipal Income R5 Overview

Invesco Limited Term Municipal Income R5 (ATFIX) is an actively managed Municipal Bond Muni National Short fund. Invesco launched the fund in 2004.

The investment seeks federal tax-exempt current income. The fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in municipal debt securities that (1) pay interest that is excluded from gross income for federal income tax purposes, and (2) do not produce income that will be considered to be an item of preference for purposes of the alternative minimum tax. At least 80% of its net assets will normally be invested in investment grade municipal debt securities. The advisor will attempt to maintain a dollar-weighted average effective portfolio maturity of five years or less.

About Invesco Limited Term Municipal Income R5 (ATFIX)

There are 8 members of the management team with an average tenure of 8.60 years: Mark Paris (2015), Julius Williams (2015), Tim O’Reilly (2016), John Schorle (2018), Joshua Cooney (2020), Rebecca Setcavage (2020), Michael Magee (2021), Jack Connelly (2016). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P Municipal Bond TR index with a weighting of 100% and S&P Municp IG Short Intermediate TR USD index with a weighting of 100%. Invesco Limited Term Municipal Income R5 has 872 securities in its portfolio. The top 10 holdings constitute 7.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Invesco Limited Term Municipal Income R5 is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Invesco Limited Term Municipal Income R5 has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.9% (98.3% domestic bond, 0.6% foreign bond and 0.0% convertible bond). Invesco Limited Term Municipal Income R5 has 1.1% of the portfolio in cash.

Assets Under Management

The fund has $523 million in total assets, which is below the $633 million average for the Muni National Short category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ATFIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco Limited Term Municipal Income R5 expense ratio is below average compared to funds in the Muni National Short category. Invesco Limited Term Municipal Income R5 has an expense ratio of 0.36%, which is 38% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco Limited Term Municipal Income R5 has a portfolio turnover rate of 42%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Muni National Short category.

Recently, in the month of July 2026, Invesco Limited Term Municipal Income R5 returned -0.7%, which earned it a grade of D, as the Muni National Short category had an average return of -0.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Invesco Limited Term Municipal Income R5 has a trailing yield of 3.65%, which is above the 2.78% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco Limited Term Municipal Income R5 Grades

Year to date, the fund has returned 1.1%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 3.9% over the past year (grade of A), 3.4% over the past three years (grade of B) and 1.8% per year over the past five years (grade of B) and 1.9% per year over the past 10 years (grade of A).

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