Mutual Funds

Invesco Diversified Dividend Fund

Equity | US Equity

Objective & Strategy

The fund seeks long-term growth of capital and, secondarily, current income by employing a total return approach, emphasizing capital appreciation, current income and principal preservation. The fund may act as a foundation for investors' portfolios.

Dividend Growers

An active strategy that seeks to deliver value through dividend investing by employing a total return approach — combining appreciation, income and preservation over a full market cycle.

A consistent history of adding value for investors

The fund seeks to invest in companies with an attractive total return profile, adding value with less risk over a full market cycle. The team's valuation discipline looks for a minimum of 35% upside over a two- to three-year horizon for new investments.

A total return approach takes advantage of market inefficiencies where investors are focused on short-term headwinds or don't recognize the long-term opportunity. This process has helped deliver attractive results for shareholders.


Source: Invesco. Since manager inception, an investment of $10,000 on Dec. 31, 2002, would have grown to $33,393 by June 30, 2016 if dividends were reinvested. If dividends were taken in cash, the return would have been $18,639. Returns for Class A shares do not include sales charges. Past performance is not a guarantee of future results.


Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Visit invesco.com/performance for the most recent month-end performance. Figures reflect reinvested distributions and changes in NAV. Investment return and principal value will vary; you may have a gain or a loss when you sell shares. Index returns do not reflect any fees, expenses or sales charges. Investments cannot be made directly into an index. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses returns and rankings would have been lower. The gross expense ratio on Class A shares for Invesco Diversified Dividend Fund is 0.85%. See the fund's current prospectus for more information.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer's board of directors and the amount of any dividend may vary over time.

A focus on sustainable and growing dividends

The fund's strategy focuses on current income from companies with sustainable and growing dividends — which are often an indicator of a well-managed, financially disciplined business. The investment team analyzes each company's ability to maintain or raise dividends in the future. This includes an analysis of historical dividend payment patterns, as well as a determination of the firm's ability to produce high returns on invested capital that could be distributed to shareholders.

As shown in the chart below, the fund has delivered a 12.13% dividend growth rate for investors since manager inception. Please note that quarterly dividend payouts varied and decreased during some periods.


Sources: Invesco, Lipper Inc., FactSet and Research Systems, Inc. The chart is from manager inception on Dec. 31, 2002, through Dec. 31, 2015. The Consumer Price Index (CPI) is a measure of change in consumer prices as determined by the US Bureau of Labor Statistics. Past performance is no guarantee of future results. Investments cannot be made directly into an index.

The dividend growth rate is not a yield or a measure of fund performance but is based on the annualized growth rate of the fund's actual dividend payments. The dividend growth rate reflected assumes an initial investment of $10,000 into Invesco Diversified Dividend Fund on Dec. 31, 2002, with no reinvestment of dividends over time. Past performance is no guarantee of future results. Please note that quarterly dividend payouts varied and decreased during some periods since the manager inception period.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer's board of directors and the amount of any dividend may vary over time.

A consistent history of lower volatility for investors

The investment team seeks to balance total return with risk management to limit volatility, minimize downside risk and ensure broad sector diversification.

The strategy's risk management framework seeks to identify sound companies and conducts scenario analysis on potential investments to assess potential downside risk. The fund outpaced peers during the last bear market, with a total return ranking at NAV in the top 8% of its category.1

Over the past 13 years, Invesco Diversified Dividend Fund has had a lower volatility profile compared to its peers. This has historically offered clients the ability to reduce the volatility of their equity exposure and have a more consistent experience over time.


Sources: Invesco, StyleADVISOR. Data shown is from manager inception Dec. 31, 2002, through June 30, 2016, and is a rolling three-year standard deviation rank at NAV. The fund is classified as a Multi-Cap Value fund by Lipper. Invesco force ranks the fund in the Large Cap Value category because we believe that category better represents the fund's investment philosophy. The volatility profile is lower than 94% (9 of 136 as of June 30, 2016) of Lipper Multi-Cap Value peers since manager inception. Past performance cannot guarantee comparable future results.

Of course, past performance is not a guarantee of future results and there is no assurance that the strategy will provide low volatility.



Footnote(s)

1 Source: StyleADVISOR. Total return ranking at NAV in Morningstar Large Value category. Bear market performance shown is from month end closest to the start date of Oct. 10, 2007, through March 31, 2009, the month end closest to the end of the bear market on March 9, 2009. The fund was ranked 99 of 1,172 funds in the Morningstar Large Value category. The fund ranked 8% (105/1,368) for one year, 5% (51/1,030) for five years and 4% (28/756) for 10 years in the Morningstar Large Value Category as of June 30, 2016.

Style Map

Invesco Diversified Dividend Fund

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

as of 08/31/2016

Morningstar Rating

Overall Rating - Large Value Category

As of 08/31/2016 the Fund had an overall rating of 5 stars out of 1179 funds and was rated 4 stars out of 1179 funds, 4 stars out of 1039 funds and 5 stars out of 761 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 08/31/2016

Top Equity Holdings | View all

% of Total Assets
GENERAL MILLS INC 3.23
AT&T INC 2.85
COCA COLA CO 2.80
EXELON CORP 2.50
HARTFORD FINANCIAL SERVICES GRP 2.39
PROCTER & GAMBLE CO 2.33
PPL CORP 2.30
SUNCOR ENERGY INC 2.18
CAMPBELL SOUP CO 2.12
KRAFT HEINZ CO THE 1.95

May not equal 100% due to rounding.

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

as of 08/31/2016 06/30/2016

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 12/31/2001 N/A 7.85 9.60 11.13 11.44 14.50 7.86
Load 12/31/2001 5.50 7.44 3.59 5.03 9.35 13.21 7.25
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.

Had fees not been waived and/or expenses reimbursed currently or in the past, returns would have been lower.

as of 08/31/2016 06/30/2016

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Russell 1000 Value IX Tr 0.77 4.59 12.92 10.69 14.39 6.08
S&P 500 Reinvested IX 0.14 4.10 12.55 12.30 14.69 7.51
Russell 1000 Value IX Tr 0.86 4.58 2.86 9.87 11.35 6.13
S&P 500 Reinvested IX 0.26 2.46 3.99 11.66 12.10 7.42

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 0.41
12b-1 Fee 0.25
Other Expenses 0.17
Interest/Dividend Exp 0.00
Total Other Expenses 0.17
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
09/15/2016 0.0722 N/A N/A 18.79
06/16/2016 0.0662 N/A N/A 18.67
03/17/2016 0.0662 N/A N/A 18.33
12/11/2015 0.1034 0.0177 0.7161 17.34
09/17/2015 0.0665 N/A N/A 18.36
06/18/2015 0.0664 N/A N/A 18.93
03/19/2015 0.0660 N/A N/A 18.43
12/12/2014 0.0836 0.0063 0.3579 17.81
09/18/2014 0.0668 N/A N/A 18.10
06/19/2014 0.0618 N/A N/A 18.17
03/20/2014 0.0618 N/A N/A 17.32
12/13/2013 0.0620 N/A 0.1608 16.36
09/19/2013 0.0620 N/A N/A 16.11
06/20/2013 0.0624 N/A N/A 15.07
03/21/2013 0.0581 N/A N/A 14.87
12/07/2012 0.0747 0.0200 0.1872 13.35
09/20/2012 0.0594 N/A N/A 13.57
06/14/2012 0.0594 N/A N/A 12.52
03/15/2012 0.0485 N/A N/A 12.98
12/09/2011 0.0579 N/A 0.1390 11.70
09/15/2011 0.0450 N/A N/A 11.46
06/16/2011 0.0500 N/A N/A 12.42
03/17/2011 0.0498 N/A N/A 12.40
12/03/2010 0.0897 N/A N/A 11.89
09/16/2010 0.0460 N/A N/A 11.21
06/17/2010 0.0501 N/A N/A 11.17
03/18/2010 0.0501 N/A N/A 11.51
12/11/2009 0.0484 N/A N/A 10.85
09/18/2009 0.0369 N/A N/A 10.56
06/19/2009 0.0465 N/A N/A 8.93
03/20/2009 0.0525 N/A N/A 7.36
12/12/2008 0.0586 N/A N/A 8.63
09/18/2008 0.0555 N/A N/A 11.75
06/18/2008 0.0649 N/A N/A 11.59
03/18/2008 0.0651 N/A N/A 11.76
12/14/2007 0.0513 0.0162 0.9262 12.583
09/20/2007 0.0501 N/A N/A 14.152
06/20/2007 0.0472 N/A N/A 14.409
03/20/2007 0.0545 N/A N/A 13.598
12/15/2006 0.0555 0.0778 0.5162 13.668
09/20/2006 0.0532 N/A N/A 13.375
06/20/2006 0.0412 N/A N/A 12.557
03/20/2006 0.0402 N/A N/A 13.012
12/16/2005 0.0402 0.0886 0.0718 12.564
09/19/2005 0.0400 N/A N/A 12.293
06/20/2005 0.0400 N/A N/A 12.264
03/18/2005 0.0400 N/A N/A 12.029
12/17/2004 0.0632 0.1126 0.0909 11.902
09/20/2004 0.0360 N/A N/A 11.536
06/18/2004 0.0355 N/A N/A 11.431
03/19/2004 0.0355 N/A N/A 11.053
12/12/2003 0.0385 N/A N/A 10.617
09/19/2003 0.0190 N/A N/A 10.002
06/20/2003 0.0190 N/A N/A 9.624
as of 08/31/2016

Sector Breakdown

May not equal 100% due to rounding.

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 08/31/2016

Fund Characteristics

3-Year Alpha 3.52%
3-Year Beta 0.72
3-Year R-Squared 0.83
3-Year Sharpe Ratio 1.34
3-Year Standard Deviation 8.47
Number of Securities 70
Total Assets $18,076,837,542.00
Wghtd Med Mkt Cap MM$ $41,352.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  Russell 1000 Value IX Tr

as of 08/31/2016

Top Equity Holdings | View all

% of Total Assets
GENERAL MILLS INC 3.23
AT&T INC 2.85
COCA COLA CO 2.80
EXELON CORP 2.50
HARTFORD FINANCIAL SERVICES GRP 2.39
PROCTER & GAMBLE CO 2.33
PPL CORP 2.30
SUNCOR ENERGY INC 2.18
CAMPBELL SOUP CO 2.12
KRAFT HEINZ CO THE 1.95

May not equal 100% due to rounding.

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

as of 08/31/2016

Top Industries

  % of Total Assets
Packaged Foods & Meats 9.04
Electric Utilities 8.76
Regional Banks 5.77
Integrated Telecommunication Services 5.00
Integrated Oil & Gas 4.75
Multi-Utilities 3.72
Household Products 3.44
Soft Drinks 2.80
Paper Packaging 2.72
Pharmaceuticals 2.65

May not equal 100% due to rounding.

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

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.

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 09/23/2016

LCEAX

NAV Change ($)
$19.01 -0.09
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 09/23/2016

Yield 

  • Distribution Yield
    with Sales Charge 1.44%
  • Distribution Yield
    without Sales Charge 1.52%
  • SEC 30-Day Yield 1.63%
  • Unsub. 30-Day Yield 1.62%

Fund Details

  • Distribution Frequency Quarterly
  • NASDAQ LCEAX
  • WSJ Abrev. N/A
  • CUSIP 001413541
  • Fund Type Equity
  • Geography Type Domestic
  • Inception Date 12/31/2001
  • Fiscal Year End 10/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1586
  • Tax ID 76-0698844