HOUSTON, March 2, 2011 /PRNewswire/ -- Invesco Van Kampen Growth and Income Fund (Ticker: ACGIX) has been selected by Standard & Poor's Equity Research as its Focus Fund of the Month. The large-cap value fund carries S&P's highest evaluation of a five star, ranked among 7,952 Domestic Equity Mutual Funds as of February 26, 2011.
In seeking out the month's Focus Fund, S&P searched on its MarketScope Advisor® platform for five-star domestic large-cap value funds that scored positively for performance analytics and had a net expense ratio of less than 1.00%. S&P believed the fund has "generated relatively strong risk-adjusted returns versus similar large-cap value funds, while having certain below-average cost factors." As a reminder, past performance cannot guarantee future results.
S&P Mutual Fund Ranking Methodology and Inputs
S&P's Mutual Fund Rankings provide S&P's quantitative and holistic assessment of the performance, risk profile, and relative costs of a given fund compared to other mutual funds in its category. Rankings range from five stars (highest) to one star (lowest) and follow a normalized distribution curve. The top 10% of funds in a category receive a five star, the next 20% a four star, the middle 40% a three star, the next 20% a two star and the bottom 10% a one star.
Rankings are refreshed weekly to incorporate the latest inputs from the holdings-based analysis and relative performance review.
The overall Mutual Fund ranking is based on a weighted average computation of three components – performance analytics, risk considerations and cost factors that evaluate, relative to its peers, a fund's underlying holdings, its historical performance, and characteristics of the fund. For equity funds, S&P incorporates the following inputs:
Performance Analytics. The component score is a weighted average of up to four inputs: Holdings-Based Inputs: S&P STARS, S&P Fair Value (weighted average value of holdings) Fund Inputs: trailing 1-year and 3-year performance vs. peers.
Risk Considerations. This component score is a weighted average of up to five inputs: Holdings-Based Inputs: S&P Quality Rank, Credit Rating (weighted average value of holdings) Fund Inputs: Manager Tenure, Sharpe Ratio and Standard Deviation.
Cost Factors. This component score is a weighted average of up to three inputs: Expense Ratio (Net), Sales Load and Portfolio Turnover of the fund.
Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
About Standard & Poor's Equity Research Services
As one of the world's largest producers of independent equity research, Standard & Poor's licenses its research to global institutions for their investors and advisors. Standard & Poor's team of experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of equities across industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/.
Standard & Poor's keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of Standard & Poor's may have information that is not available to other Standard & Poor's business units. Standard & Poor's has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. Standard & Poor's does not trade for its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at www.standardandpoors.com or by clicking here.
Fund holdings are subject to change.
The S&P 500 Value Index is an unmanaged index considered representative of U.S. value stocks.
Consider the investment objectives, risks, charges and expenses carefully before investing. Please read the prospectus carefully before investing. For this and more complete information about the funds, contact your financial adviser or visit invesco.com/fundprospectus.
Invesco Distributors, Inc.