For the first quarter 2010, the three largest contributors to performance are as follows: a lack of exposure to utility companies; an underweight position in energy, which is primarily comprised of integrated oil companies; and, an overweight allocation to consumer discretionary/media companies.
The three largest detractors to performance are as follows; an overweight exposure to the materials sector, primarily comprised of a large paper company holding; an underweight allocation to industrial stocks; and, an overweight exposure to health care companies, primarily large cap pharmaceutical stocks.
We continue to position the portfolio from a bottom-up basis, selecting stocks that we believe have reasonable valuations relative to our assessment of fair value. At period-end, the financials sector remained the largest sector weight, with holdings broadly diversified across banks, brokerage and insurance stocks. The next largest sector exposures were consumer discretionary, healthcare and consumer staples. The smallest sector weightings were in utilities (in which the portfolio owns no stocks), industrials and telecommunication services. Relative to Russell 1000® Value Index, the portfolio was overweight consumer discretionary, staples, health care, technology, and materials. The portfolio was underweight in energy, financials, industrials, telecom, and utilities as of the end of the period.
The opinions are those of the portfolio managers as of 3/31/10, are not necessarily those of Invesco, and are subject to change at any time due to market or economic conditions. Portfolio holdings and sectors are subject to change daily. All information provided is for informational purposes only and should not be deemed as a recommendation to buy or sell securities or participate in any investment strategy.
Relative performance information provided herein is based on the strategy’s representative account. Past performance is not indicative of future results.
Information is based on a representative account within a wrap program sponsored by a broker/dealer affiliate of Invesco Advisors Inc. that is managed according to the Invesco Van Kampen Value Portfolio. Portfolios may differ due to specific restrictions and guidelines. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index.
The S&P 500 Index is comprised of 500 large-cap U.S. companies with a market capitalization of $1 billion or more. These 500 companies are a representative sample of some 100 industries chosen primarily based on market size, liquidity and industry group representation. Russell 1000® Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The indexes do not include any expenses, fees or sales charges, which would lower performance. The indexes are unmanaged and should not be considered an investment. It is not possible to invest directly in an index.
Legal, accounting and tax restrictions, transaction costs and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment or other advisors, at both the outset or any transaction and on an ongoing basis, to determine such suitability.
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There is no guarantee that this investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.
This material does not constitute an offer to buy or sell any financial instrument or participate in any trading strategy. Please refer to the Form ADV Part II for important information about the investment manager. Your Financial Adviser can provide this document.
