(PUB) Investing 2015

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23 Morningstar FundInvestor December 2015
Data through November 30, 2015 FINRA members: For internal or institutional use only.
Invesco Diversified Dividend A Ticker
LCEAX
Yield
1.5%
Total Assets
$11,978 mil
Mstar Category
Large Value
Benchmark 1: Russell 1000 Value TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 10-23-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ¶ Neutral
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
4 1 1 1 1 1 1 1 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
( ( ( & * * * & ( * & Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11-15 History
12.41 13.65 12.56 8.97 10.87 12.26 11.89 13.47 16.94 18.30 18.76 NAV
5.23 16.41 0.36 -26.95 23.66 15.12 -0.20 17.17 29.00 11.93 3.62 Total Return %
-1.82 -5.83 0.53 9.90 3.97 -0.39 -0.59 -0.33 -3.53 -1.52 5.33 +/- Bmark 1
0.32 0.62 -5.13 10.05 -2.80 0.05 -2.31 1.17 -3.39 -1.76 0.61 +/- Bmark 2
1.33 1.54 1.50 1.96 2.07 2.19 1.66 2.05 1.83 1.63 1.09 Income Return %
3.90 14.87 -1.13 -28.91 21.59 12.93 -1.86 15.12 27.17 10.30 2.52 Capital Return %
54 72 60 3 47 26 43 21 75 27 2 Total Rtn % Rank Cat
0.16 0.19 0.20 0.24 0.18 0.24 0.20 0.24 0.24 0.27 0.20 Income $
0.16 0.59 0.94 0.00 0.00 0.00 0.14 0.21 0.16 0.36 0.00 Capital Gains $
1.15 1.03 1.00 1.02 1.12 1.02 0.97 0.92 0.87 0.84 0.83 Expense Ratio %
1.27 1.43 1.45 1.93 2.17 2.23 1.64 1.78 1.65 1.59 1.51 Income Ratio %
22 9 17 18 24 13 20 12 9 6 . Turnover Rate %
223 271 220 163 202 465 2,150 2,565 3,904 4,312 4,789 Net Assets $mil
Performance 11-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 4.91 1.03 -14.72 10.41 -0.20
2012 10.08 -1.30 5.61 2.11 17.17
2013 12.76 1.87 3.26 8.74 29.00
2014 3.67 3.84 -1.46 5.51 11.93
2015 2.06 -0.13 -2.62 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 3.22 -1.48 -2.84 69 10,322
6 Mo 0.39 3.47 0.61 4 10,039
1 Yr 3.78 4.89 1.03 2 10,378
3 Yr Avg 14.80 0.12 -1.29 20 15,130
5 Yr Avg 13.37 -0.10 -1.03 20 18,726
10 Yr Avg 7.88 1.43 0.40 8 21,353
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 11.55 52 0.98 40
5 Yr (estimated) 11.18 41 0.82 43
10 Yr (estimated) 6.28 13 0.93 46
Potential Capital Gain Exposure: 28% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -1.93
3 Yr 12.66 Avg Low QQQ
5 Yr 12.09 Avg Low QQQ
10 Yr 7.27 +Avg -Avg QQQQ
Incept 7.28
Other Measures Standard Index Best Fit Index
Alpha 2.2 2.1
Beta 0.78 0.78
R-Squared 86 87
Standard Deviation 8.80
Mean 14.80
Sharpe Ratio 1.62
Portfolio Analysis 09-30-15
Total Stocks: 78
Share change since 06-30-15 Sector YTD Ret % % Assets
TInvesco Short Term Inv Li — — 5.08
TInvesco Treasurer's Ser T — — 5.08
General Mills Inc Cnsmr Def 11.55 3.41
Campbell Soup Co Cnsmr Def 21.56 2.81
TCoca-Cola Co Cnsmr Def 4.07 2.43
YHeineken NV Cnsmr Def — 2.43
TAT&T Inc Comm Svcs 5.84 2.19
YEli Lilly and Co Hlth Care 21.81 2.11
RThe Kraft Heinz Co Cnsmr Def — 2.07
YWalgreens Boots Alliance Cnsmr Def 12.11 2.05
TPPL Corp Utilities 4.30 1.88
YTarget Corp Cnsmr Def -1.65 1.84
YGeneral Dynamics Corp Industrl 8.38 1.79
Newell Rubbermaid Inc Cnsmr Def 19.24 1.77
Sysco Corp Cnsmr Def 5.82 1.70
Darden Restaurants Inc Cnsmr Cyc 11.18 1.69
Zions Bancorp Finan Svcs 5.86 1.68
TExelon Corp Utilities -23.00 1.67
TTotal SA Energy — 1.66
YStanCorp Financial Group Finan Svcs 64.67 1.63
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 30.6
Large 38.8
Mid 27.6
Small 3.0
Micro 0.0
Avg $mil:
28,519
Value Measures Rel Category
Price/Earnings 18.17 1.19
Price/Book 1.99 1.12
Price/Sales 1.37 1.08
Price/Cash Flow 8.89 1.11
Dividend Yield % 2.98 0.99
Growth Measures % Rel Category
Long-Term Erngs 8.44 0.93
Book Value 4.46 0.89
Sales 1.75 0.81
Cash Flow 3.43 0.86
Historical Erngs -4.65 -1.20
Profitability %
Return on Equity 16.79
Return on Assets 5.36
Net Margin 9.97
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 27.76 0.74
r BasicMat 1.75 0.65
t CnsmrCyc 9.89 2.05
y FinanSvcs 16.12 0.63
u Real Est 0.00 0.00
j Sensitive 21.66 0.57
i CommSrvs 3.73 1.37
o Energy 6.33 0.47
p Industrl 10.03 0.97
a Technlgy 1.57 0.14
k Defensive 50.58 2.07
s CnsmrDef 30.96 4.40
d Hlthcare 6.16 0.53
f Utilities 13.46 2.32
Composition - Net
Cash 10.2
Stocks 89.8
Bonds 0.0
Other 0.0
Foreign 13.2
(% of Stock)
Morningstar's Take by Susan Wasserman 10-23-15
Successfulexecutionofaprudentapproachbyacohesive
team earns Invesco Diversified Dividend a Morningstar
Analyst Rating of Silver.
The fund believes in winning by not losing. Lead
manager Meggan Walsh, two comanagers, and three
analysts are each responsible for covering a subset of
sectors. They target firms with healthy balance sheets,
stable management and earnings power over a two- to
three-year investment horizon, and free cash flow
growth. Ideas are put through bear scenarios to test their
viability in down markets and the overall risk/reward of
the stock. A stock's base case must have at least 3-to-1
upside from its bear case. On the sell-side, the team
places a holding under watch if fundamentals deteriorate
or the stock is priced below cost basis over a protracted
period of time. The result is a fairly concentrated portfolio
of 70-85 positions and very low turnover relative to the
large-value Morningstar Category.
The fund sets itself apart in other ways. Walsh
doesn’t like the concentrated sectors, and the team has
stayed away from technology and healthcare--just 8% of
assets combined in those sectors, compared with about
25% of assets for the Russell 1000 Value Index and the
typical fund in the category. Walsh likes stocks that will
performwell over a full market cycle. So the team instead
has focused on consumer defensive and consumer
cyclical stocks, stashing 42% of assets there, more than
double the category average.
This prudent approach works. The fund has lagged
the Russell 1000 Value and racier peers in some buoyant
markets but has protected well on the downside. Strong
stock-picking has helped drive results: consumer
defensive picks have been especially strong for the year
todate,whereasmostsectorshavehadnegative returns.
The net result has been a great long-term risk/reward
profile. The fund has handily outperformed the Russell
1000 Value Index and its typical peer on a risk-adjusted
return basis since its inception. And performance during
recent market volatility confirms that it remains well-
positioned to weather sustained market corrections.
Address: AIM Equity Funds Minimum Purchase: $1000 Add: $50 IRA: $250
Houston, TX 77046 Min Auto Inv Plan: $50 Add: $50
800-959-4246 Sales Fees: 5.50%L
Web Address: Management Fee: 0.60% mx./0.35% mn.
Inception: 12-31-01 Actual Fees: Mgt:0.42% Dist:0.25%
Advisor: Invesco Advisers, Inc. Expense Projections: 3Yr:$805 5Yr:$995 10Yr:$1540
Subadvisor: None Income Distribution: Quarterly
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A