Invesco Municipal Income Fund

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

Actively managed U.S. bond fund
One fund, 5 share classes:VKMMXVMICXVMIIXVMINXVKMSX
$2.68B NAV
562 positions · as of 2026-05-31 · filed 2026-07-30

Fund classification

Classified from what the fund holds · as of 2026 Q2

Invesco Municipal Income 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
Mixed credit
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q2

The Fund's investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

Strategy · summarised

The fund invests at least 80% of assets in investment-grade municipal securities selected through active management, with the adviser conducting in-depth credit analysis and adjusting portfolio duration based on interest rate expectations and relative value considerations. The fund may hold up to 20% in below-investment-grade municipal securities at purchase, and because the fund may continue to hold securities after downgrade, below-investment-grade exposure can exceed this limit significantly over time. The fund uses leverage through borrowing (up to one-third of total assets) and inverse floating rate securities in tender option bond transactions to enhance returns.

Expenses
0.81% 1.86%across 5 share classes
Share classExpense ratio
VKMMX1.11%
VMICX1.86%
VMIIX0.86%
VMINX1.00%
VKMSX0.81%

Portfolio turnover 30.00% · as of 2026 Q2

Allocation

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

107.60%
of net assets
Bonds107.59%
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: 29 new27 exited

Largest new: New Jersey Health Care Facilities Financing Authority, Lansing (City of), MI Board of Water & Light, Louisiana Stadium & Exposition District, New York State Dormitory Authority, Illinois Finance Authority, City of Austin TX Airport System Revenue, Arapahoe County School District No 5 Cherry Creek, Dawson Trails Metropolitan District No 1

Largest exited: Harris County Cultural Education Facilities Finance Corp., Oklahoma (State of) Turnpike Authority (Senior Bonds), San Diego (County of), CA Regional Airport Authority, New Hope Cultural Education Facilities Finance Corp., San Diego (City of), CA Public Facilities Financing Authority, Greater Orlando Aviation Authority, Michigan (State of) Building Authority (Facilities Program), Cypress-Fairbanks Independent School District

Return profile

Chart:

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

Share class1-year3-year5-yearVolWorst fall
+5.04%+10.17%+1.54%5.06%-6.97%
+4.17%+7.71%-2.20%5.12%-7.26%
+5.21%+10.90%+2.73%5.09%-6.99%
+5.12%+10.48%+1.96%5.11%-6.94%
+5.26%+11.08%+3.01%5.10%-6.98%

These classes hold the same portfolio, so the 5.22pp 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
4.65%
Avg maturity
20.68 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.

6%
floating
Fixed rate87.1%
Zero-coupon or unclassified6.7%
Floating rate6.2%
Maturity ladder

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

<1y10y+
<1y2.1%
1-3y2.7%
3-5y1.7%
5-10y8.0%
10y+85.4%
Flagged holdings
Defaulted: 0.56% · $16.01M · 17 positions
In arrears: 0.56% · $16.01M · 17 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
6.90 yr
approx. move per 100bp
Credit-spread duration
6.79 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.

≈ -13.5%
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.

+6.79
yrs total
Investment grade+5.43 yr
High yield+1.36 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 rate6.90 yr total
3 mo30 yr
3 mo0.03 yr0%
1 yr0.36 yr5%
5 yr1.33 yr19%
10 yr3.25 yr47%
30 yr1.93 yr28%
Credit spread6.79 yr total
3 mo30 yr
3 mo0.03 yr0%
1 yr0.36 yr5%
5 yr1.40 yr21%
10 yr3.22 yr47%
30 yr1.78 yr26%

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+0.02+0.01$4.7k$2.3k
1 yr+0.36+0.26+0.10$70.3k$26.1k
5 yr+1.33+1.18+0.23$315.2k$60.3k
10 yr+3.25+2.63+0.58$704.2k$156.0k
30 yr+1.93+1.34+0.44$358.2k$118.2k

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
Miami-Dade (County of), FL4.00% · due 2045-10-010.98%$26.16M
Metropolitan Washington Airports Authority4.00% · due 2049-10-010.86%$23.04M
Lower Alabama Gas District (The)5.00% · due 2046-09-010.82%$21.84M
Florida Development Finance Corp. (Brightline Florida Passenger Rail Expansion)5.25% · due 2053-07-010.77%$20.58M
TSASC, Inc.5.00% · due 2045-06-010.71%$19.08M
Board of Regents of the University of Texas System5.00% · due 2049-08-150.62%$16.58M
Columbus Regional Airport Authority (John Glenn Columbus International Airport)5.50% · due 2055-01-010.62%$16.52M
Buckeye Tobacco Settlement Financing Authority5.00% · due 2055-06-010.60%$16.18M
New Jersey Health Care Facilities Financing Authority2.15% floating · due 2061-07-010.60%$16.00M
Denver (City & County of), CO5.00% · due 2048-12-010.59%$15.85M
Showing 10 of 562Sign in to see more

Top 10 positions are 7.17% of net assets, top 25 15.29%, across 392 issuers.

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