Summary

• Invesco Short Duration High Yield Municipal Fund Class A shares outperformed its style-specific index, the Custom Short Duration High Yield Municipal Index, during the first quarter of 2026.
• New municipal issuance reached $135 billion, 11% higher than the first quarter of 2025, driven by significant US infrastructure needs and higher supply costs.
• The Invesco Short Duration High Yield Municipal Fund maintains an overweight position in revenue bonds relative to state and local general obligation bonds.
• The Invesco Short Duration High Yield Municipal Fund continues to rely on extensive bottom-up research capabilities to identify strong credits with attractive yields amid pressure from reduced federal support.
• Security selection in the industrial development and unrated sectors, along with the higher education sector, added to the fund's relative performance during the quarter.

Q1 2026 Key takeaways

1 Fund performance

Invesco Short Duration High Yield Municipal Fund Class A shares outperformed its style-specific index, the Custom Short Duration High Yield Municipal Index.

2 Seeking attractive opportunities through collaborative