Invesco High Yield Municipal Fund

AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) · 5 share classes

Actively managed U.S. bond fund
One fund, 5 share classes:ACTHXACTFXACTDXACTNXACTSX
$6.58B NAV
1,203 positions · as of 2026-05-31 · filed 2026-07-30

Fund classification

Classified from what the fund holds · as of 2026 Q2

Invesco High Yield Municipal Fund is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
High yield
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q2

The Funds investment objective is to seek federal tax-exempt current income and taxable capital appreciation.

Strategy · summarised

The fund invests at least 75% of its net assets in medium- and lower-grade municipal securities rated BBB+ through D or unrated equivalents, emphasizing revenue bonds and higher yields. It may invest up to 20% in taxable securities and employs leverage through borrowings up to one-third of total assets and inverse floating rate interests in tender option bond transactions. Because the fund concentrates in below-investment-grade municipal debt, credit deterioration among issuers can materially affect portfolio value. The fund has no geographic diversification limit and may invest more than 25% in a single municipal market segment if yields justify it.

Expenses
0.99% 2.02%across 5 share classes
Share classExpense ratio
ACTHX1.28%
ACTFX2.02%
ACTDX1.03%
ACTNX0.99%
ACTSX0.99%

Portfolio turnover 26.00% · as of 2026 Q2

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

107.33%
of net assets
Bonds107.20%
Stocks0.13%
Derivatives0.01%

Look-through blends 2 underlying funds; 0.0% of NAV was not looked through and stays direct-classified.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 46 new55 exited

Largest new: Illinois Finance Authority, Dawson Trails Metropolitan District No 1, City of Austin TX Airport System Revenue ×2, City of Houston TX Hotel Occupancy Tax & Special Revenue ×2, AM BIDCO HOLDINGS LLC, Southern California Tobacco Securitization Authority (San Diego County Asset Securitization Corp.)

Largest exited: Miami-Dade (County of), FL, Tarrant County Cultural Education Facilities Finance Corp., Black Belt Energy Gas District, San Diego (County of), CA Regional Airport Authority, Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels), Brevard (County of), FL Health Facilities Authority (Health First Obligated Group), Virginia Commonwealth University Health System Authority, Illinois Finance Authority

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+5.78%+12.31%+2.26%5.15%-8.62%
+5.02%+9.95%-1.30%5.09%-8.82%
+6.05%+13.16%+3.48%5.04%-8.66%
+6.22%+13.48%+3.78%5.07%-8.56%
+6.09%+13.31%+3.88%5.07%-8.56%

These classes hold the same portfolio, so the 5.19pp spread over 5 years is the cost difference between them — roughly 1.04pp a year — not a difference in what they own.

Cumulative return· Jun 2023 – Apr 2026

May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31

Avg coupon
4.87%
Avg maturity
22.29 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

5%
floating
Fixed rate83.6%
Zero-coupon or unclassified11.0%
Floating rate5.4%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y1.3%
1-3y1.6%
3-5y1.6%
5-10y6.2%
10y+89.4%
Flagged holdings
Defaulted: 3.09% · $216.42M · 83 positions
In arrears: 3.09% · $216.42M · 83 positions
Paid in kind: none reported

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.

Interest-rate duration
6.19 yr
approx. move per 100bp
Credit-spread duration
6.11 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -12.5%
of value
Interest rates50%
Credit spreads50%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+6.11
yrs total
High yield+3.80 yr
Investment grade+2.30 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate6.19 yr total
3 mo30 yr
3 mo0.03 yr0%
1 yr0.32 yr5%
5 yr1.01 yr16%
10 yr2.87 yr46%
30 yr1.98 yr32%
Credit spread6.11 yr total
3 mo30 yr
3 mo0.03 yr0%
1 yr0.30 yr5%
5 yr1.03 yr17%
10 yr2.89 yr47%
30 yr1.86 yr30%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.03+0.01+0.02$4.8k$12.8k
1 yr+0.32+0.08+0.22$53.3k$146.8k
5 yr+1.01+0.36+0.67$237.5k$439.1k
10 yr+2.87+1.19+1.69$786.3k$1.11m
30 yr+1.98+0.66+1.20$433.9k$789.1k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Children's Trust Fund0.00% · due 2050-05-151.09%$71.98M
Westchester (County of), NY Industrial Development Agency (Million Air Two LLC General Aviation Facilities)7.00% · due 2046-06-010.81%$53.64M
Chicago (City of), IL6.00% · due 2038-01-010.81%$53.01M
Illinois (State of) Finance Authority (Park Place of Elmhurst)5.13% · due 2060-05-150.78%$51.08M
Buckeye Tobacco Settlement Financing Authority5.00% · due 2055-06-010.73%$48.12M
Tulsa (City of), OK Airports Improvement Trust5.50% · due 2035-12-010.72%$47.63M
New York Liberty Development Corp. (3 World Trade Center)7.25% · due 2044-11-150.71%$46.57M
California (State of) Statewide Financing Authority (Pooled Tobacco Securitization Program)0.00% · due 2046-06-010.69%$45.53M
Hillsborough (County of), FL Industrial Development Authority (Baycare Health System)5.50% · due 2054-11-150.68%$44.82M
Nassau County Tobacco Settlement Corp.5.13% · due 2046-06-010.62%$40.52M
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Top 10 positions are 7.64% of net assets, top 25 15.40%, across 745 issuers.

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