Invesco Van Kampen Equity and Income A (ACEIX) Fund

Investing in balanced mutual fund is one of the easiest for investor to achieve instant portfolio diversification. This balanced fund invests in variety of assets such as equities or stocks, fixed income or bonds, preferred, convertible, and money markets or cash. One of the top moderate allocation balanced funds is Invesco Van Kampen Equity and Income fund. More review can be found below.

Invesco Van Kampen Equity and Income A (ACEIX)

The investment objective of Invesco Van Kampen Equity and Income fund is to achieve the highest possible income. The second objective is to provide long-term capital growth. The fund invests mostly in income-producing equity instruments and investment-grade quality debt securities. The income producing equity may include common stocks, preferred stocks, and convertible. This moderate allocation fund may invest <25% of total assets in securities of foreign issuers and may invest <15% of total assets in real estate investment trusts (REITs).

Fund Profile
Invesco Van Kampen Equity and Income
  • Fund Inception Date: August 03, 1960
  • Ticker Symbol: ACEIX
  • CUSIP: 92113D102
  • Beta (3yr): 1.17
  • Rank in category (YTD): 24%
  • Category: Moderate Allocation
  • Yield: 1.98%
  • Capital Gains: 0%
  • Expense Ratio: 0.81%
  • Net Assets: $ 10.64 billion
  • Number of Years Up: 40 years
  • Number of Years Down: 11 years
updated on 2/17/2012

Thomas Bastian is the lead fund manager. He started managing this moderate allocation fund in April 2003. The fund was first introduced to public in 1960. The total net assets of this Invesco fund are $10.64 billion. This fund has annual expense ratio of 0.81%. This figure is quite close to the average in the Moderate Allocation category (0.98%).

Since its inception 51 years ago, this fund has recorded a total of 40 years of positive return. The best 1-year total return was achieved in 1997 with 24.13%. The worst 1-year total return was in 2008 with -24.78%. This fund has 5-year average return of 1.27%. It has 2-stars rating from Morningstar. The Morningstar analyst has rated this fund with Bronze rating. The performance of this fund based on the load adjusted returns are:
  • 1-year: -6.66%
  • 3-year: 9.02%
  • 5-year: 0.13%
  • 10-year: 4.33%
Investor can start investing in this balanced fund with a minimum initial investment of $1,000. This amount applies for either brokerage or IRA account. The minimum subsequent investment needed is $50. This fund has 0.25% of 12b1 fee. The front end sales load fee is 5.50%. This fund is available for purchase from 124 brokerages, such as E Trade Financial, JP Morgan, Merrill Lynch, Scottrade Load, Schwab Institutional, Fidelity Retail Funds Network, Ameriprise Brokerage, etc. The other classes of this fund are Class C (ACERX), Class Y (ACETX), Class R (ACESX) and Class I (ACEKX).

Fund Composition

The top 10 holdings of this fund as of December 2011 are General Electrics Co (2.92%), JP Morgan Chase & Co (2.72%), Marsh & McLennan Co (2.03%), Pfizer Inc (1.93%), Anadarko Petroleum Corp (1.82%), Procter & Gamble Co (1.71%), Royal Dutch Shell A ADR (1.66%), Ebay Inc (1.59%), Viacom Inc Class B (1.46%) and Microsoft Corp (1.46%). These are the top ten companies out of 410 total holdings.

The top industries as of December 2011 are Pharmaceuticals (5.79%), Other Diversified Financial Services (5.13%), Industrial Conglomerates (4.98%), Integrated Oil & Gas (4.34%) and Diversified Banking (3.59%). The top sector breakdown is Financials (17.60%), Health Care (16.30%), Information Technology (14.70%), Energy (12.50%) and Consumer Discretionary (11.60%).

The Principal Investment Risks include Foreign Investment risk, Derivatives Risks, Forward Currency Contracts, Futures Risk, Options Risk, and management risk.

Disclosure: No Position


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