Fund Evaluator:

Invesco Balanced-Risk Commodity Strat R5 Overview

Invesco Balanced-Risk Commodity Strat R5 (BRCNX) is an actively managed Commodities Commodities Broad Basket fund. Invesco launched the fund in 2010.

The investment seeks to provide total return. The fund invests, under normal conditions, in derivatives and other commodity-linked instruments whose performance is expected to correspond to the performance of the underlying commodity, without investing directly in physical commodities. It seeks to achieve its investment objective by investing in derivatives and other commodity-linked instruments that provide exposure to the following four sectors of the commodities markets: agricultural/livestock, energy, industrial metals and precious metals.

About Invesco Balanced-Risk Commodity Strat R5 (BRCNX)

There are 4 members of the management team with an average tenure of 8.18 years: Chris Devine (2010), Jan Grindrod (2026), John Burrello (2024), Scott Hixon (2010). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and Bloomberg Commodity TR USD index with a weighting of 100%. Invesco Balanced-Risk Commodity Strat R5 has 11 securities in its portfolio. The top 10 holdings constitute 99.8% 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 Balanced-Risk Commodity Strat R5 is part of the Real Assets global asset class and is within the Commodities fund group. Invesco Balanced-Risk Commodity Strat R5 has 6.6% 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 20.0% (13.4% domestic bond, 6.6% foreign bond and 0.0% convertible bond). Invesco Balanced-Risk Commodity Strat R5 has 56.4% of the portfolio in cash.

Assets Under Management

The fund has $156 million in total assets, which is below the $476 million average for the Commodities Broad Basket 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.

BRCNX 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 Balanced-Risk Commodity Strat R5 expense ratio is high compared to funds in the Commodities Broad Basket category. Invesco Balanced-Risk Commodity Strat R5 has an expense ratio of 1.05%, which is 5% lower than its category average, making the fund expense ratio grade a C. 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 Balanced-Risk Commodity Strat R5 has a portfolio turnover rate of 44%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 78% for the Commodities Broad Basket category.

Recently, in the month of June 2026, Invesco Balanced-Risk Commodity Strat R5 returned -10.1%, which earned it a grade of F, as the Commodities Broad Basket category had an average return of -8.1%. 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 Balanced-Risk Commodity Strat R5 has a trailing yield of 8.04%, which is below the 9.25% category average. The fund normally distributes its income annually 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 Balanced-Risk Commodity Strat R5 Grades

Year to date, the fund has returned 17.3%, 2.9 percentage points better than the category, which translates into a grade of B. The fund has returned 33.4% over the past year (grade of A), 14.6% over the past three years (grade of A) and 9.7% per year over the past five years (grade of B) and 6.4% per year over the past 10 years (grade of C).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Invesco Balanced-Risk Commodity Strat R5, including its riskiness, submit your email to unlock the rest of the article.