Summary

• The Invesco Balanced-Risk Allocation Fund had a positive return in the first quarter, driven by gains in the real return macro factor.
• The real return macro factor was the leading performance driver during the quarter, with all four commodity sub-complexes posting gains, led by energy.
• Gains from tactical positioning in commodities outweighed losses from positioning in equities and bonds, adding to the Invesco Balanced-Risk Allocation Fund's relative return.
• Higher oil prices complicated the outlook for monetary policy, prompting investors to reassess the timing and magnitude of expected policy easing, which drove up sovereign bond yields.
• The Invesco Balanced-Risk Allocation Fund remained underweight bonds while the overweight in equities modestly declined and the overweight in commodities increased.

Q1 2026 Key takeaways

1 The fund outperformed its benchmark

The fund had a positive return in the first quarter, driven by gains in the real return macro factor.

2 Real return assets were