Invesco Limited Term California Municipal Fund (OLCAX) Class A shares have demonstrated robust performance, surpassing its designated benchmark, the S&P Municipal California Investment Grade 4-7 Years Bond Index, in the final quarter of 2025. This achievement underscores the fund's effective management strategies in navigating the municipal bond market, which saw positive returns across various segments during the period, including investment grade, high yield, and taxable municipals.

During the fourth quarter of 2025, the municipal bond market displayed strength, with investment-grade bonds, high-yield municipals, and taxable municipals recording positive returns of 1.42%, 1.11%, and 1.05%, respectively. Annually, these segments delivered impressive returns of 4.25%, 2.46%, and 7.89%. Leveraging its extensive resources and deep market expertise, Invesco consistently seeks to pinpoint the most advantageous opportunities to enhance shareholder returns, optimizing portfolio construction to capitalize on favorable market dynamics.

The strategic positioning of OLCAX involves an overweight allocation to shorter maturities and revenue bonds, with a flexible approach to selectively integrating longer-duration securities when market conditions are appropriate. The fund's most significant exposures are directed towards stable sectors such as airports, public power, and higher education, reflecting a focus on robust and reliable revenue streams. This forward-looking strategy is supported by attractive municipal yields, healthy state and local fiscal conditions, and the anticipated prospect of further interest rate reductions by the Federal Reserve, all of which contribute to a positive outlook for tax-exempt income and credit quality.

The consistent outperformance and strategic asset allocation of the Invesco Limited Term California Municipal Fund underscore a commitment to delivering strong results for investors. The fund’s focus on high-quality municipal bonds and adaptive management against evolving market conditions positions it well for continued success. Investors can look forward to sustained growth and stability, reinforcing the positive impact of thoughtful and expert-driven investment decisions.