Mutual Funds

Invesco Comstock Fund

Equity | US Equity

Objective & Strategy

The fund seeks total return through growth of capital and current income.

Diamonds in the Rough

A long-term, high-conviction strategy that aims to build wealth and manage risk. The fund seeks to outperform the market by making early and patient investments in large, undervalued companies with improving business dynamics.

Carefully selected portfolio

The team takes a research-intensive approach that focuses on sound but undervalued companies with improving business dynamics. We believe that longer-term investors can take advantage of pricing anomalies in financial markets by purchasing stocks of companies that are currently underpriced.

Here's a stock example:

Carnival Cruise Line (3.01% of total net assets as of March 31, 2016)

Here's what we see in Carnival:

  • An industry in transition
  • An overreaction by the market to fixable events
  • The potential for meaningful upside in the long term
Carefully selected portfolio

We became increasingly interested in Carnival Cruise Line a couple years ago, as the cruising industry experienced a transformation from growth to maturity. The big issue was that in an industry where demand growth had historically been 4% to 5% per year, cruise-ship capacity had been growing closer to 8% per year. So the first question was whether the industry would reduce capacity, which we believed had to happen.

The second issue more specific to Carnival was whether its high-profile incidents (the sinking of the Costa Concordia and the malfunctioning electrical systems on one of its Caribbean ships) did permanent damage to the brand. We spent considerable time researching what happened, how customers responded and how the company responded, and we concluded these were fixable issues that wouldn't permanently damage the company. If we were right about Carnival, and if industry capacity stopped growing faster than demand, we saw significant upside in the stock as margins returned to normal.

That's still our thesis. Industry capacity growth is now down to the 2% to 3% range, which we expect to translate into increased pricing power. Despite the fact that the lodging and gaming industries have returned to pre-crisis margins, Carnival's operating margins were 10% in late 2013 (the year we started really building the position). That's 8% below where they were in 2008, which is a significant gap. Even if margins don’t come all the way back to levels seen before the 2008 financial crisis, that’s OK — our analysis accounts for that possibility.

This is a case where price-earnings (P/E) multiples are most relevant to our analysis. We're looking to buy at the low end of the P/E and price-to-cash-flow range over the past 20 years, and we generally arrive at our intrinsic-value estimates by placing what we consider a normal historical multiple on our earnings estimate a few years out. So, if Carnival gets back to levels that are closer to what it experienced during its history, we would expect to achieve a meaningful upside on our position.

Sources: Invesco, Bloomberg Inc., unless otherwise noted. Information is as of Dec. 31, 2015.

Holdings mentioned are for educational purposes only and are not buy sell recommendations.

Price-to-cash-flow ratio, the most common measure of how expensive a stock is, is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period. Managers believe intrinsic value represents the inherent business value of portfolio holdings during a two- to three-year investment horizon based on their estimates of future cash flow. Intrinsic value estimates are independent of market price, and, as a result, market price may never reflect intrinsic value estimates, especially for an entire portfolio. Price-earnings (P/E) ratio, the most common measure of how expensive a stock is, is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period.

A contrarian value approach

The team believes that investment opportunities are created when a stock has temporarily fallen out of favor with investors. As a result, the fund can look quite different from its benchmark. We feel that stock picking, rather than making sector bets, provides a more consistent path to success.

The fund is positioned in a contrarian manner compared with its benchmark.

Invesco Comstock Fund vs. Russell 1000 Value Index
  • The fund currently has no exposure to Real Estate Investment Trusts (REITs). We continue to believe utilities are generally overvalued. Due to our deep value investment philosophy, the fund will be generally underweight in utilities until we see more attractive valuations.
  • The fund is most constructive on large banks and capital markets, which comprise over 20% of the portfolio. This is mainly due to these stocks trading at discounts not seen in decades, along with long-term prospects of returning excess capital back to shareholders in the form of stock buybacks and increased dividends.

Contrarian among contrarians – Although most value managers feel they are contrarian versus the broad market, the Comstock team can even look different versus their peers.

Invesco Comstock Fund vs. Lipper Large-Cap Value Funds Category

In it for the long term

How can investors navigate uncertain times? Taking a long-term view may help. Invesco Comstock Fund has successfully invested throughout changing market and economic environments. Through it all, the fund has delivered competitive long-term performance.

The fund has outperformed both the market and its benchmark since manager inception (8/31/99 - 12/31/14)

Sources: Invesco, Lipper, Inc. Data as of March 31, 2016. Returns for Class A shares reflect the reinvestment of distributions, but does not include sales charges, which would have reduced the performance. Broad benchmark represented by the S&P 500 Index and the style benchmark is represented by the Russell 1000 Value Index. Past performance is no guarantee of comparable future results. The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The S&P 500 Index is an unmanaged index considered representative of the US stock market. Unmanaged index returns do not reflect any fees, expenses or sales charges. An investment cannot be made directly in an index.

Style Map

Invesco Comstock Fund

The map illustrates areas in which the fund can invest, not necessarily within a limited period of time.

as of 04/30/2016

Morningstar Rating

Overall Rating - Large Value Category

As of 04/30/2016 the Fund had an overall rating of 3 stars out of 1199 funds and was rated 2 stars out of 1199 funds, 2 stars out of 1048 funds and 3 stars out of 759 funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable. ©2016 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. A fund is eligible for a Morningstar Rating three years after inception. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics.

Management team

as of 04/30/2016

Top Equity Holdings | View all

% of Total Assets
CITIGROUP INC 4.70
JPMORGAN CHASE & CO 3.85
BANK OF AMERICA CORP 2.84
CARNIVAL CORP 2.74
CISCO SYSTEMS INC 2.49
SUNCOR ENERGY INC 2.41
PFIZER INC 2.11
ROYAL DUTCH SHELL A ADR 2.10
WELLS FARGO & CO 1.92
JOHNSON CONTROLS INC 1.79

Holdings are subject to change and are not buy/sell recommendations.

as of 04/30/2016 03/31/2016

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 10/07/1968 N/A 10.72 1.30 -6.90 7.22 8.36 5.43
Load 10/07/1968 5.50 10.59 -4.26 -12.04 5.21 7.14 4.84
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.

Performance shown at NAV does not include applicable front-end or CDSC sales charges, which would have reduced the performance.

Performance figures reflect reinvested distributions and changes in net asset value (NAV) and the effect of the maximum sales charge unless otherwise stated.

as of 04/30/2016 03/31/2016

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Russell 1000 Value IX Tr 2.10 9.43 -0.40 9.59 10.13 5.67
S&P 500 Reinvested IX 0.39 7.05 1.21 11.26 11.02 6.91
Russell 1000 Value IX Tr 7.20 1.64 -1.54 9.38 10.25 5.72
S&P 500 Reinvested IX 6.78 1.35 1.78 11.82 11.58 7.01

Source: FactSet Research Systems Inc.

Source: FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.37
12b-1 Fee 0.25
Other Expenses 0.21
Interest/Dividend Exp 0.00
Total Other Expenses 0.21
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.01
Total Annual Fund Operating Expenses 0.84
Contractual Waivers/Reimbursements -0.01
Net Expenses - PER PROSPECTUS 0.83
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 0.83
This information is updated per the most recent prospectus.

Historical Prices

From   to
No history records found for this date range

Distributions

From   to
    Capital Gains Reinvestment
Price ($)
Ex-Date Income Short Term Long Term
03/17/2016 0.0995 N/A N/A 21.14
12/11/2015 0.0995 0.0386 1.9291 21.35
09/17/2015 0.0793 N/A N/A 23.67
06/18/2015 0.0793 N/A N/A 26.18
03/19/2015 0.0793 N/A N/A 25.49
12/12/2014 0.1847 N/A N/A 24.57
09/18/2014 0.0798 N/A N/A 25.87
06/19/2014 0.0700 N/A N/A 25.17
03/20/2014 0.0700 N/A N/A 23.99
12/13/2013 0.0700 N/A N/A 22.77
09/19/2013 0.0700 N/A N/A 22.04
06/20/2013 0.0700 N/A N/A 20.46
03/21/2013 0.0700 N/A N/A 19.55
12/07/2012 0.0700 N/A N/A 17.53
09/20/2012 0.0656 N/A N/A 17.66
06/14/2012 0.0656 N/A N/A 15.96
03/15/2012 0.0600 N/A N/A 17.09
12/09/2011 0.0528 N/A N/A 15.13
09/15/2011 0.0528 N/A N/A 14.71
06/16/2011 0.0528 N/A N/A 15.77
03/17/2011 0.0528 N/A N/A 15.96
12/03/2010 0.0528 N/A N/A 15.22
09/16/2010 0.0528 N/A N/A 14.06
06/09/2010 0.0524 N/A N/A 13.12
03/10/2010 0.0515 N/A N/A 14.23
12/09/2009 0.0315 0.0000 N/A 13.61
09/09/2009 0.0315 N/A N/A 12.93
06/10/2009 0.0525 N/A N/A 11.21
03/11/2009 0.0625 N/A N/A 8.33
12/10/2008 0.0725 0.0000 0.0000 10.57
09/10/2008 0.0725 0.0000 N/A 14.96
06/11/2008 0.0800 0.0000 N/A 15.19
03/12/2008 0.0900 0.0115 0.1416 15.66
12/11/2007 0.0900 0.0628 0.8918 17.94
09/12/2007 0.0900 0.0000 N/A 19.31
06/13/2007 0.0900 0.0000 N/A 20.29
03/14/2007 0.0950 0.0146 0.1098 18.70
12/13/2006 0.0950 0.0128 0.4577 19.05
09/13/2006 0.0950 0.0000 N/A 18.47
06/14/2006 0.0950 0.0000 N/A 17.34
03/15/2006 0.0950 0.0566 0.4204 17.95
12/14/2005 0.0849 0.1588 0.9930 17.99
09/14/2005 0.0825 N/A N/A 18.41
06/15/2005 0.0825 N/A N/A 18.38
03/16/2005 0.0725 N/A 0.0045 18.27
12/08/2004 0.0575 N/A N/A 17.91
09/15/2004 0.0575 N/A N/A 16.77
06/16/2004 0.0575 N/A N/A 16.43
03/17/2004 0.0475 N/A N/A 16.42
12/10/2003 0.0475 N/A N/A 15.11
09/17/2003 0.0475 N/A N/A 14.49
06/18/2003 0.0475 N/A N/A 14.25
03/19/2003 0.0422 N/A N/A 12.03
12/11/2002 0.0422 N/A N/A 12.50
09/18/2002 0.0422 N/A N/A 11.80
06/19/2002 0.0422 N/A N/A 14.13
03/20/2002 0.0422 0.0714 0.0728 15.98
12/12/2001 0.0470 0.3453 0.3438 15.44
09/19/2001 0.0540 N/A N/A 15.14
06/20/2001 0.0625 N/A N/A 17.61
03/21/2001 0.0625 0.1743 0.1317 16.15
12/13/2000 0.1233 0.2839 0.7838 16.40
09/20/2000 0.0625 N/A N/A 15.39
06/21/2000 0.0625 N/A N/A 14.75
03/22/2000 0.0625 0.2967 0.2888 13.61
12/13/1999 0.1020 0.5951 0.6321 14.40
as of 04/30/2016

Sector Breakdown

The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.

as of 04/30/2016

Fund Characteristics

3-Year Alpha -2.97%
3-Year Beta 1.10
3-Year R-Squared 0.95
3-Year Sharpe Ratio 0.55
3-Year Standard Deviation 12.93
Number of Securities 78
Total Assets $12,073,617,178.00
Wghtd Med Mkt Cap MM$ $48,967.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  Russell 1000 Value IX Tr

as of 04/30/2016

Top Equity Holdings | View all

% of Total Assets
CITIGROUP INC 4.70
JPMORGAN CHASE & CO 3.85
BANK OF AMERICA CORP 2.84
CARNIVAL CORP 2.74
CISCO SYSTEMS INC 2.49
SUNCOR ENERGY INC 2.41
PFIZER INC 2.11
ROYAL DUTCH SHELL A ADR 2.10
WELLS FARGO & CO 1.92
JOHNSON CONTROLS INC 1.79

Holdings are subject to change and are not buy/sell recommendations.

as of 04/30/2016

Top Industries

  % of Total Assets
Diversified Banks 13.73
Integrated Oil & Gas 8.98
Pharmaceuticals 6.45
Oil & Gas Exploration & Production 4.31
Regional Banks 3.81
Movies & Entertainment 2.96
Cable & Satellite 2.91
Life & Health Insurance 2.90
Hotels, Resorts & Cruise Lines 2.74
Oil & Gas Equipment & Services 2.68

The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.

 About risk

Depositary Receipts Risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer.

Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund's returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund's ability to use certain derivatives or their cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.

Emerging Markets Securities Risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information.

Foreign Securities Risk. The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.

Management Risk. The Fund is actively managed and depends heavily on the Adviser's judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund's portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.

Market Risk. The market values of the Fund's investments, and therefore the value of the Fund's shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.

REIT Risk/Real Estate Risk. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund's holdings. Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults, the Fund may own real estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.

Small- and Mid-Capitalization Risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies' securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market.

Value Investing Style Risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market.

as of 05/27/2016

ACSTX

NAV Change ($)
$21.94 0.14
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 05/27/2016

Yield 

  • Distribution Yield
    with Sales Charge 1.71%
  • Distribution Yield
    without Sales Charge 1.81%
  • SEC 30-Day Yield 1.56%
  • Unsub. 30-Day Yield 1.55%

Fund Details

  • Distribution Frequency Quarterly
  • NASDAQ ACSTX
  • WSJ Abrev. CmstA
  • CUSIP 00143M711
  • Fund Type Equity
  • Geography Type Domestic
  • Inception Date 10/07/1968
  • Fiscal Year End 04/30
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1737
  • Tax ID 95-2513084