In our Best of Funds Family series, we are focusing today on funds from Invesco Aim, one of the world’s largest and most diversified investment management firms. Invesco Aim manages over $388.7 billion in assets and has operations in 20 countries. We are spotlighting five funds here: three sector funds (Utilities, Technology and Non-US) and two fixed-income funds (Corporate High Yield and National Municipal).
Aim Utilities (FSTUX) seeks income and capital appreciation. It was incepted in June 1986.
Firms that produce, generate, transmit or distribute natural gas or electricity constitute the majority of the fund’s investments. The fund also invests in companies that provide telecommunications services, including local, long distance, and wireless. It concentrates on companies with steady earnings, strong market positions, and a healthy mix of earnings growth and dividend yield.
The fund has an expense ratio of 1.51% against a category average of 1.39%. It has an annual holdings turnover of 5% compared to a category average of 100%. The fund’s top holdings include Entergy Corporation, PG & E Corporation and FPL Group. For the six-month period ended September 2009 the fund recorded lower returns than the S&P 500 and the Lipper Utility Funds Indexes.
Meggan M. Walsh has been lead manager of this fund since January 2009. Walsh is a Charted Financial Analyst and a senior portfolio manager with Invesco Aim.
Aim Technology A (ITYAX) was incepted in April 2002. The fund seeks capital appreciation.
The entire technology sector constitutes the fund’s investment domain. It focuses on hardware, software, and semiconductors; telecommunications equipment and services as well as service-related companies in information technology. The fund concentrates on market leaders having strong management with impressive track records, financial strength, and distinctive products or content.
The fund has an expense ratio of 1.83% against a category average of 1.84%. It has an annual holdings turnover of 68% compared to a category average of 176%. The fund’s top holdings include Apple, Google and Hewlett-Packard. For the six-month period ended September 2009 the fund outperformed the S&P 500 Index but recorded lower returns than the Merrill Lynch 100 Technology Index and the Lipper Science and Technology Funds Index.
Warren Tennant has been lead manager of this fund since January 2009. Tennant has been associated with AIM Advisors since 2000.
Aim International Small Company A (IEGAX) seeks long-term capital growth. It was incepted in August 2000.
At least 80% of the fund’s assets are used to purchase small international companies that have a market capitalization, at the time of purchase smaller than the largest firm included in the Russell 2000 index during the last 11-month period. It may invest up to 35% of assets in the companies located in emerging markets. The fund may invest up to 20% of its assets in securities of U.S. companies. It is non-diversified.
The fund has an expense ratio of 1.58% against a category average of 1.65%. It has an annual holdings turnover of 19% compared to a category average of 86%. The fund’s top holdings include Amgen Inc, Gilead Sciences Inc and Celgene Corporation. For the six-month period ended June 2009, the fund outperformed its broad market index, the MSCI EAFE Index as well as its peer group index Lipper International Small/Mid Cap Growth Funds Index.
Jason T. Holzer has been lead manager of this fund since August 2000. Holzer is a Charted Financial Analyst and a senior portfolio manager with Invesco Aim.
Aim High Yield A (AMHYX) seeks a high level of current income and long-term capital appreciation. It was incepted in December 1993.
The fund mainly invests in non-investment grade debt securities. It may also invest up to 25% of assets in foreign securities, and up to 15% of assets in securities of companies located in developing markets.
The fund has an expense ratio of 1.00% against a category average of 1.20%. As of October 2009, it has a portfolio turnover of 104% against a category average of 90%. The fund’s top holdings include AIM STIT Liquid Assets, AIM Treasurer’s Ser Tr Prem Instl and Nielsen Finance Llc. For the fiscal year ended July 31, 2009, the fund underperformed its broad market index, the Barclays Capital U.S. Aggregate Index and the Barclays Capital U.S. Corporate High Yield Index, its style specific index.
Peter Ehret has been lead manager of this fund since April 2001. Before his current assignment, Ehret was director of high yield research at Van Kampen Investment Advisory Corp.
Aim High Income Municipal A (AHMAX) seeks high current income exempt from federal income taxes by investing in a diversified portfolio of municipal securities. It was incepted in January 1998.
At least 80% of the fund’s assets are invested in municipal bond securities that are rated BBB/Baa or lower by Standard & Poor’s Ratings Services or other nationally renowned rating firms. The securities invested in are those which generate income not subject to regular tax rules and to the alternative minimum tax rules. It declares dividends on each working day and also pays monthly dividends.
The fund has an expense ratio of 0.80% against a category average of 1.12%. It has an annual holdings turnover of 22% compared to a category average of 45%. The fund’s top holdings include Moon Industrial Development Authority, Illinois Finance Authority 6.875% and West Virginia State Hospital Finance Authority 6.5%. For the six-month period ended September 2009, the fund outperformed its broad market index, the Barclays Capital Municipal Bond Index but underperformed its peer group index the Lipper High Yield Municipal Debt Funds Index.
Franklin Ruben has been lead manager of this fund since January 1998. Before his current assignment Ruben was an associate portfolio manager at Van Kampen.
Click here to see all the mutual funds offered by Invesco Aim.
Discover Many More Funds
Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.
