| Scorecard |
|---|
|
3 / 5 Stars
|
|
Lipper
5
5
3
5
2
|
|
Zacks Investment Research
3
(Hold)
|
|
Standard & Poor's
4 / 5 Stars
|
|
TheStreet.com
C+
(Hold)
|
#45 in Moderate Allocation
U.S. News evaluated 279 Moderate Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Performance
The fund has returned 16.37 percent over the past year, 9.41 percent over the past three years, 6.19 percent over the past five years, and 8.01 percent over the past decade.
| Trailing Returns | Updated 04.30.2013 |
|---|---|
| Year to date | 11.5% |
| 1 Year | 16.4% |
| 3 Years (Annualized) | 9.4% |
| 5 Years (Annualized) | 6.2% |
| 10 Years (Annualized) | 8.0% |
Summary
A balanced approach has guided Invesco Van Kampen Equity and Income fund through good times as well as bad. Since 1960, the managers have used a mix of stocks, bonds, and convertibles to provide consistent returns.
As of May 03, 2013, the fund has assets totaling $11.28 billion. Its portfolio consists of primarily stocks of U.S. companies along with a mix of bonds and convertibles.
Van Kampen was officially acquired by Invesco in June 2010. The fund remains invested in rebounding financial companies like Bank of America and JPMorgan Chase. Management also holds a small amount of investment-grade corporate bonds and treasuries. The fund also has fairly large holdings in energy companies like Shell and Occidental Petroleum. Management even held onto BP for a bit following the oil spill in the Gulf of Mexico. The fund has returned 16.37 percent over the past year and 9.41 percent over the past three years.
Looking back, the managers’ foresight saved the fund from the worst of the financial crisis. They maintained a strict underweighting in the financial sector beginning in 2005, according to Morningstar. Unlike most moderate allocation funds that invest in a mix of stocks and bonds, this fund also invests in convertibles. Lead manager Thomas Bastian describes the fund as “the fund for all seasons.” The fund has returned 6.19 percent over the past five years and 8.01 percent over the past decade.
Investment Strategy
The goals of the fund are twofold: consistent income through fixed-income holdings along with long-term growth of capital through investments in mostly U.S. equities. “We want to do a better job on the downside than our peer group, and then we want to afford our customers the upside participation,” says Bastian.
Role in Portfolio
Morningstar assigns the fund a “core” role, saying, “It has consistently weathered all market conditions better than most of its peers, making it worth serious consideration from hybrid investors.”
Management
The fund is run by a team of six portfolio managers. Tom Bastian has been the lead manager since Jim Gilligan moved on in 2008.
Risk
The fund managers devote a fairly large portion of the fund’s assets to equities and a moderate portion to convertibles, both of which can be volatile at times.
Fund Opinions
The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.
Value Line 2013-03-12
The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 3 for five years, and 3 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.
Value Line 2013-03-12
The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.
Value Line 2013-03-12
Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund is supported by a weak corporate culture that can, at times, struggle to put shareholder interests ahead of business incentives. That said, its compensation structure does aim to align managers’ interests with those of their investors.”
Morningstar
In the annual Lipper/Barron’s Fund Families Survey for 2009, Van Kampen funds ranks 15th out of 61 fund families surveyed.
Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund is supported by a weak corporate culture that can, at times, struggle to put shareholder interests ahead of business incentives. That said, its compensation structure does aim to align managers’ interests with those of their investors.”
Morningstar
In the annual Lipper/Barron’s Fund Families Survey for 2009, Van Kampen funds ranks 15th out of 61 fund families surveyed.
