Invesco Mutual Fund Ad: Intentional Investing in the Age of Income

Find intentional investing in the age of income, an Invesco investment advertisement about mutual fund. Check the income producing mutual funds review for your financial choice in your retirement or brokerage account.

Top Income Funds by Invesco

Source: Barron's

Invesco advertises one page financial ads about “Age of Income” at Barron’s financial newspaper on September 2, 2013. It chooses three 4-stars mutual funds for target. You will find each fund review below.

Invesco has selected difference assets classes for investors to choose. It consists of equity mutual fund, alternative mutual fund, and bond mutual fund. These funds do have high yield for income and potential capital growth. Want to know my review, please check below.

While the ads is impressive, how should you approach your long term investment?

The ads contents are:

Income opportunities across asset classes:

• Equities: Invesco Diversified Dividend Fund (LCEAX)
• Alternatives: Invesco Global Real Estate Income Fund (ASRAX)
• Fixed Income: Invesco High Yield Municipal Fund (ACTHX)

Overall Morningstar Rating based on risk-adjusted returns as of June 30, 2103, and derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year rating metrics. Past performance does not guarantee future results. 

You don’t just need income. You need the right income. Look to Invesco.

To learn more about Invesco’s income products, visit invesco.com/IncomeStars or contact your financial advisor or Invesco representative today.

Fund Review

Invesco Diversified Dividend Fund (LCEAX)

This Invesco Diversified Dividend Fund utilizes its assets to purchase dividend-paying equity securities. The fund managers are Meggan M. Walsh and Jonathan Harrington. The dividend yield is 1.64%. Its total net assets are $7.8 billion. The annual expense ratio is 0.91%. This class A has a front end sales load of 5.75%. Depending on your account, this load may be waived.

This top Invesco mutual fund has returned 17% over the past 3 year, and 8.08% over the past 5 years. For the past 3 years, it has returned slightly above average than its peers. The top 3 stocks in its portfolio are General Mills Inc, SunTrust Banks Inc, and Heineken N.V.

In my opinion, this Invesco Diversified Dividend Fund is a good choice for your long term investment. It can be a great investment if you can get the sales load being waived. Another alternative is to choose the investor class (LCEIX), R6 class (LCEFX), or Load waived (LCEAX.lw).

Invesco Global Real Estate Income Fund (ASRAX)

With a dividend yield of 5.90%, the Invesco Global Real Estate Income Fund invests mainly in small- and mid-cap real estate companies and real estate investment trusts (REITs). The total net assets are $1.06 billion. This global real estate mutual fund has an expense ratio of 1.31% per year. You can invest in your brokerage account with $1,000 initial investment, and in your individual retirement account (IRA) with $250 initial investment.

This best fund has returned 8.38% over the past 3 year, and 4.96% over the past 5 year. For the past 3 year, the fund performance has been lagging its benchmark and its peer. The top 2 sectors are real estate and industrials. The top 3 stocks in its portfolio include AvalonBay Communities Inc, Unibail-Rodamco SE, and Essex Property Trust.

For me, this Invesco fund is an okay fund for long term investment. With sales load of 5.50%, the fund performance will be lower over long term. You should only consider if you can get the load waived such as Class A load waived (ASRAX.lw), Class Y (ASRYX), Class R6 (ASRFX), or Class R5 (ASRIX). Another great choice for global real estate fund is Third Avenue Real Estate Value Fund (TVRVX).

Invesco High Yield Municipal Fund (ACTHX)

Invesco High Yield Municipal Fund is one of the best municipal bond mutual funds. It uses its assets to buy a portfolio of medium- and lower-grade municipal debts issued by various states and localities in U.S. The fund managers consist of James D Phillips, William Black, and Mark Paris. This class A fund has a sales load of 4.25%. Its expense ratio fee is 0.84%. You can invest with as little as $1,000.

Having a high yield of 6.08%, it has a 5 year average return of 4.04%. The fund performance has been slightly above average. For the past 3 year the average returns are as follow:

• Year 2012: 13.92%
• Year 2011: 11.30%
• Year 2010: 4.35%

This high yield muni mutual fund will reopen for new investors. The top 3 sectors are health, state & local general obligation, and industrial.

Similar to all above fund, if you can have the sales load being waived, you may find it as a good mutual fund to invest in.

Bottom Line

• Watch for the sales load fund, long term return may suffer because of this fee
• Find the no sales load class to invest either in your brokerage account or retirement account