Fund Evaluator:

Invesco Limited Term CA Municipal Y Overview

Invesco Limited Term CA Municipal Y (OLCYX) is an actively managed Municipal Bond Muni Single State Short fund. Invesco launched the fund in 2010.

The investment seeks tax-free income. Under normal market conditions, and as a fundamental policy, the fund invests at least 80% of its net assets (plus borrowings for investment purposes) in securities the income from which, in the opinion of counsel to the issuer of each security, is exempt from regular federal individual and, as applicable, the fund's state income tax. Additionally, under normal market conditions, it invests at least 80% of its net assets (plus borrowings for investment purposes) in California municipal securities and in derivatives and other instruments that have economic characteristics similar to such securities.

About Invesco Limited Term CA Municipal Y (OLCYX)

There are 5 members of the management team with an average tenure of 5.03 years: Mark Paris (2019), Julius Williams (2019), Elizabeth Mossow (2024), Tim O'Reilly (2019), Joshua Cooney (2024). 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 Municipal California IG 4-7 B TR USD index with a weighting of 100%. Invesco Limited Term CA Municipal Y has 426 securities in its portfolio. The top 10 holdings constitute 16.3% 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 CA Municipal Y is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Invesco Limited Term CA Municipal Y has 1.2% 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 98.6% (97.4% domestic bond, 1.2% foreign bond and 0.0% convertible bond). Invesco Limited Term CA Municipal Y has 1.4% of the portfolio in cash.

Assets Under Management

The fund has $564 million in total assets, which is above the $238 million average for the Muni Single State 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.

OLCYX 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 CA Municipal Y expense ratio is average compared to funds in the Muni Single State Short category. Invesco Limited Term CA Municipal Y has an expense ratio of 0.54%, which is 17% 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 Limited Term CA Municipal Y has a portfolio turnover rate of 40%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 43% for the Muni Single State Short category.

Recently, in the month of July 2026, Invesco Limited Term CA Municipal Y returned -1.0%, which earned it a grade of C, as the Muni Single State Short category had an average return of -0.7%. 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 CA Municipal Y has a trailing yield of 3.57%, which is above the 2.95% category average. The fund normally distributes its income monthly.

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 CA Municipal Y Grades

Year to date, the fund has returned 1.1%, 0.4 percentage points better than the category, which translates into a grade of B. The fund has returned 5.0% over the past year (grade of A), 3.2% over the past three years (grade of B) and 1.1% per year over the past five years (grade of C) and 2.4% per year over the past 10 years (grade of A).

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