Invesco Municipal Income Fund Q4 2025 Commentary

Invesco US3.32K FollowersFollow5ShareSavePlay(8min)CommentsSummaryInvesco Municipal Income Fund Class A shares at net asset value underperformed its style-specific index, the S&P Municipal Bond 5+ Year Investment Grade Index.New municipal issuance reached $143 billion for the quarter and a record $584 billion for the year, surpassing last year's record $509 billion.The US Federal Reserve cut the federal funds rate twice, by 0.25% in October and 0.25% in December.We believe high absolute yields and solid fundamentals make municipals a compelling choice.Overall, we maintain a constructive outlook on duration and see attractive opportunities to increase duration following the steepening of the municipal yield curve in 2025. Donny DBM/iStock via Getty Images Key takeaways 1 Fund performance Invesco Municipal Income Fund Class A shares at net asset value (NAV) underperformed its style-specific index, the S&P Municipal Bond 5+ Year Investment Grade Index. 2 Seeking attractive opportunitiesThis article was written byInvesco US3.32K FollowersFollowInvesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professional for information concerning their individual situation. The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE All data provided by Invesco unless otherwise noted. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products and collective trust funds. Invesco Advisers, Inc. and other affiliated investment advisers mentioned provide investment advisory services and do not sell securities.

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