- The document is an Invesco client guide that provides information about mutual funds and investing.
- It discusses what mutual funds are, the benefits they provide, and the different types including money market, stock, bond, and balanced funds.
- It also outlines strategies for building wealth through dollar-cost averaging and provides an investment profile questionnaire to help clients determine their risk tolerance and preferred investment style.
2. 2
Diversification does not guarantee a profit or eliminate the risk of loss.
Mutual funds — helping you reach your financial goals
Mutual funds provide investors with access to the expertise of professional money
managers, sophisticated strategies and well-diversified portfolios. They do this in
a highly cost-efficient way by spreading the cost over many investors.
What is a mutual fund?
A mutual fund is a group of stocks, bonds or other securities that have been
pooled together as one investment. They provide access to professional managers
who make and monitor the investment selections as dictated by the fund’s strategy.
Mutual funds may provide investors:
•• Professional management
•• Diversification
•• Affordability
•• Convenience
Mutual fund process
Global economyIndividual investors Pooled assets
For illustrative purposes only
How many types of mutual funds are there?
There are literally thousands of each type of fund available for purchase.
Funds generally tend to be one of four types:
•• Money market mutual funds
•• Stock mutual funds
•• Bond mutual funds
•• Balanced or a mix of assets in one
mutual fund
The ‘Rule of 72’
Do you know the Rule of 72? It’s an easy way to calculate just how long it’s going to
take for your money to double. Just take the number 72 and divide it by the interest
rate you hope to earn. That number gives you the approximate number of years it will
take for your investment to double. As you can see, a one-time contribution of $10,000
doubles six more times at a 12 percent return than at 3 percent.
Rule of 72
Years 3% 6% 12% Years 3% 6% 12%
0 $10,000 $10,000 $10,000 30 $320,000
6 $20,000 36 $80,000 $640,000
12 $20,000 $40,000 42 $1,280,000
18 $80,000 48 $40,000 $160,000 $2,560,000
24 $20,000 $40,000 $160,000
How many doubling periods do you have in your life? This table serves as a demonstration of how the Rule of 72 concept works
from a mathematical standpoint. It is not intended to represent the future values of any specific investment. The chart uses
constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower
performance. It is unlikely that an investment would grow 10% or greater on a consistent basis, given current market conditions.
3. Invesco client guide 3
How to build wealth — power of the PAC
Dollar-cost averaging through different market cycles
Market conditions can alter over time. A dollar-cost averaging strategy — also known as
Pre-Authorized Checking (PAC) or PAC Plus (PAC with a fixed contribution increase each
year) — may help investors reach their long-term investment goals. Both hypothetical
investor A and B below were able to cut their average cost per share during changing
market conditions because they used this strategy.
Taking advantage of market highs and lows — example of investing $100 a Month
• Hypothetical Investor A: Began purchasing shares as the market was rising.
• Hypothetical Investor B: Began purchasing shares as the market fell and then recovered to where it was at the
beginning of their investment period.
0
5
10
15
20
Month 6Month 5Month 4Month 3Month 2Month 1
Price per share ($)
Rising market
Fluctuating market
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Full shares
accumulated
Hypothetical Investor A
Monthly investment ($) 100 100 100 100 100 100
42Price per share ($) 10 12 14 16 18 20
Shares purchased 10.00 8.33 7.14 6.25 5.56 5.00
Hypothetical Investor B
Monthly investment ($) 100 100 100 100 100 100
125Price per share ($) 10 7 4 2 6 10
Shares purchased 10.00 14.29 25.00 50.00 16.67 10.00
Total
investment ($)
Total shares
purchased
Average cost
per share ($)
Average price
per share ($)
Hypothetical Investor A 600 42.28 14.19 15.00
Hypothetical Investor B 600 125.95 4.76 6.50
Both hypothetical investor A and B were able to cut their average cost per share during
rising and fluctuating market conditions because they used a dollar-cost averaging
strategy. This strategy helped both investors stay on their wealth-building track while
potentially weathering different kinds of market changes.
This hypothetical example is provided for illustrative purposes only and is not meant to depict the performance of any specific investment.
Average cost per share: Total investment divided by total number of shares bought.
Average price per share: Sum of share prices divided by the number of contributions.
A program of regular investment cannot ensure a profit or protect against a loss in a declining market. Since such a dollar-cost averaging program involves
continuous investments regardless of fluctuating share values, you should consider your financial ability to continue the program through all market cycles.
4. 44
Getting started: Investment profile questionnaire (IPQ)
Answering the questions below and discussing them with your PFSI Registered
Representative can be a valuable first step in identifying your own approach to
investing. The total score from your responses is a rough indication of how much
risk or safety you potentially prefer in your investments from information you have
provided. If your Investment Profile score and matching Model Portfolio do not reflect
your desired objectives, please consult your PFSI Registered Representative.
For each question below, choose the answer that best describes your situation
and circle the corresponding point value that is associated with each of your answers,
then total your points to determine your Investment Profile score.
Time horizon Your current situation and future income needs
What is your current age?
Points
5) Less than 45
4) 45 to 55
3) 56 to 65
2) 66 to 75
1) Older than 75
When do you expect to start drawing
income from this account?
Points
5) Not for at least 20 years
4) In 11 to 19 years
3) In 6 to 10 years
2) In 2 to 5 years
1) 2 years or less
Long-term goals and expectations Your views of how an investment should perform over the long-term
For this investment, I intend to take:
Points
5) Higher risk in return for
potentially superior returns
4) Moderate to higher risk in return
for potentially greater returns
3) Moderate risk in return for some
potential growth opportunity
2) Low risk in return for a little
potential growth opportunity
1) Slight to no risk in return for
potential general stability of
principal
Assuming normal market conditions,
what would you expect from this
investment over time?
Points
5) To generally keep pace with the
stock market
4) To slightly trail the stock market,
but make a good profit
3) To trail the stock market, but
make a moderate profit
2) To have some stability, but
make modest profits
1) To have a high degree of stability,
but make small profits
Suppose the stock market performs
unusually poorly over the next
decade. What would you expect from
this investment?
Points
5) To also perform poorly
4) To make very little or nothing
3) To make a little gain
2) To make a modest gain
1) To make gains, regardless of the
stock market’s performance
Short-term risk attitudes Your attitude toward short-term volatility
Which of these statements would
best describe your attitudes about
the next three years’ performance
of this investment?
Points
5) I understand a loss of principal
is a realistic possibility
4) I can tolerate a loss
3) I can tolerate a small loss
2) I’d have a hard time tolerating
any losses
1) I need to see at least some return
Which of these statements would
best describe your attitudes about
the next three month’s performance
of this investment?
Points
5) I wouldn’t worry about market
fluctuations in that time frame
4) If my investment declined greater
than 20%, I’d be concerned
3) If my investment declined greater
than 10%, I’d be concerned
2) I can only tolerate small short-term
fluctuations in my investment
1) I’d have a hard time accepting
any investment declines
Please total your points to determine
your Investment Profile score, then
reference the Model Portfolios on the
next page to identify your preferred
investing style.
Total points:
5. Invesco client guide 5
Before you invest any money, you should read the mutual fund’s current prospectus carefully. If you want to know more about the investment companies offered
through Primerica, contact your PFSI Registered Representative or write to Primerica, 1 Primerica Parkway, Duluth, GA 30099-0001. If you have any additional
questions, please call 800 544 5445.
These allocations might not be suitable for all investors. Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss.
Use the point total from the previous page to determine your
investment profile
Keep in mind that this profile is intended to give you a start and doesn’t cover all the issues
that you should consider. If your Investment Profile score and matching Model Portfolio do
not reflect your desired objectives, please consult your PFSI Registered Representative.
Income Portfolio 7–10 points
% Investment profile description: This portfolio may be appropriate for
investors whose primary objective is current income. The majority of assets
in this portfolio are allocated to short-term and intermediate-term investments
such as fixed-income securities (bonds). A portion of this portfolio is also
invested in equities (stocks), which are subject to price fluctuations, as
protection against the erosion to purchasing power caused by inflation.
• US Stock 23
• Non US Stock 7
• Bonds and Cash 70
Conservative Growth Portfolio 11–17 points
% Investment profile description: This portfolio may be appropriate for
investors who prefer a balanced mix of current income and capital
appreciation, and are willing to tolerate some short-term price fluctuations
associated with equity (stock) investments. The assets in this portfolio are
balanced among equities (stocks) and fixed-income securities (bonds).
• US Stock 38
• Non US Stock 12
• Bonds and Cash 50
Moderate Growth Portfolio 18–24 points
% Investment profile description: This portfolio may be appropriate for
investors whose primary objective is capital appreciation and to whom
current income is of secondary importance. A moderate growth investor is
willing to tolerate short-term price fluctuations. The assets in this portfolio
are a mix of equities (stocks) and fixed-income securities (bonds), with a
higher weighting towards equities (stocks).
• US Stock 49
• Non US Stock 16
• Bonds and Cash 35
Growth Portfolio 25–31 points
% Investment profile description: This portfolio may be appropriate for
investors whose primary objective is long-term capital appreciation and who
are willing to tolerate potentially large price fluctuations. Generating current
income is not a primary goal. Assets in this portfolio are invested primarily
(and in some cases entirely) in equities (stocks).
• US Stock 64
• Non US Stock 21
• Bonds and Cash 15
Aggressive Growth Portfolio 32–35 points
% Investment profile description: This portfolio may be appropriate for
investors whose primary objective is maximum long-term capital
appreciation and who are willing to tolerate more substantial, potentially
large price fluctuations. Generating current income is not a goal. Assets in
this portfolio are invested entirely (or almost entirely) in equities (stocks).
• US Stock 75
• Non US Stock 25
After discussing your Investment Profile with your PFSI Registered Representative,
please initial:
Representative initials: Client initials: Date:
6. 6
1 Annual dividends in cash represents the dividends paid out at the end of each calendar year on the 2,299 shares acquired from the original $10,000 on
8/31/60 plus additional shares acquired through reinvestment of capital gains. Annual dividends reinvested represents the dividends paid out at the end
of each calendar year on the original shares, plus the dividends of additional shares acquired through reinvestment.
2 The Dow Jones Industrial AverageSM
(Dow) is a price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange.
It is not possible to invest directly in an average or index.
3 Sources: Bloomberg, L.P., Invesco
Single fund solutions
Invesco Equity and Income Fund
Growth of a $10,000 investment
Performance of an assumed $10,000 investment from first full month since inception (8/31/60 to 12/31/15).
$10,000
$100,000
$1,000,000
$5,000,000
1966
Dow hits high of
1,000 for first time
1972
Watergate scandal;
Dow closes above 1,000
1982
Dow closes above 1,000
and never looks back
1983
US unemployment
rises to 9.7%
1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986
Flat market Bull market
Capital value
Annual dividends
in cash ($)1
563 497 535 668 1,034 890 1,105 1,085 1,195 1,372 1,461 1,880 1,829
Value at year end ($) 9,407 11,107 11,845 21,721 15,871 18,676 12,307 17,442 15,937 16,689 22,622 25,384 29,610
Total value
Annual dividends
reinvested ($)1
617 606 703 928 1,616 1,538 2,136 2,495 3,139 4,189 5,116 7,432 8,436
Value at year end ($) 10,688 13,946 16,152 31,748 25,990 33,579 25,567 41,766 43,743 53,700 83,522 109,626 145,081
Annual
total returns (%)
-7.93 14.28 -8.29 36.96 4.23 1.32 -10.08 27.42 1.14 12.13 44.08 4.81 12.21
Dow year end2,3
652 874 786 944 839 1,020 616 1,005 805 964 1,047 1,212 1,896
7. Invesco client guide 7
This is a hypothetical example, but is based on actual fund performance for Class A shares. Performance shown in the mountain chart includes the reinvestment of
distributions but does not include sales charges.
The illustration above is based on an initial investment of $10,000 in Class A shares made on 8/31/60. The illustration and calendar year returns represent those
of Class A shares without the imposition of any sales charges. If sales charges were included, returns would be lower. Results are hypothetical. Performance for other
share classes will vary. Please keep in mind that high, double-digit and/or triple-digit returns are highly unusual and cannot be sustained. Investors should also be
aware that these returns were primarily achieved during favorable market conditions. The graph uses a logarithmic scale to more accurately reflect historic volatility.
Past performance is no guarantee of future results and current performance may be lower or higher than the figures shown. For the most recent month-end
performance figures, please visit invesco.com/performance. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth
more or less than their original cost. Performance of other share classes will vary.
1999
Dow closes above
10,000 for first time
2001
In wake of Sept. 11 attacks,
US declares war on terrorism
2009
Dow closes
above 10,000
1987
Financial crisis; Dow falls more
than 22% on Black Monday
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015
Bear market
2,219 1,786 1,486 1,489 1,356 1,831 2,504 2,294 2,296 2,958 3,486 2,382 3,081 5,044 4,150
29,724 30,480 39,166 41,735 60,566 84,159 106,124 90,394 118,101 137,274 101,087 134,626 144,030 187,588 179,131
11,748 10,896 10,028 10,692 10,255 14,386 20,379 20,246 21,256 28,246 35,322 25,356 34,113 55,437 48,497
166,438 193,134 270,877 307,996 471,902 685,308 905,652 811,826 1,108,464 1,344,838 1,044,524 1,449,966 1,616,598 2,203,337 2,151,597
12.58 -4.68 10.72 -1.98 15.55 16.99 20.19 -8.32 11.77 12.53 -24.78 12.39 12.88 9.07 -2.35
2,169 2,634 3,301 3,834 6,448 9,181 10,787 8,342 10,783 12,463 8,776 11,578 13,104 17,823 17,425
• Invesco Equity and Income Fund ending
value (12/31/15) $2,151,597
Average annual total return
on this investment (12/31/15) 10.19%
8. 8
Experienced
leadership2
Thomas Bastian
20 years of financial
industry experience
James Roeder
19 years of financial
industry experience
Sergio Marcheli
17 years of financial
industry experience
Chuck Burge
19 years of financial
industry experience
Matthew Titus
14 years of financial
industry experience
Invesco Equity and Income Fund (ACEIX)1
Portfolio diversification in a single investment (%)
Data as of June 30, 2016
• Domestic Common Stock 54.33
• Domestic Corporate Bonds 11.57
• Domestic Government Bonds 10.25
• International Common Stock 8.45
• Domestic Convertible Bonds 6.93
• Cash 4.67
• International Corporate Bonds 2.20
• Domestic Convertible Preferred 0.95
• Other 0.46
• International Convertible Bonds 0.07
• Domestic Preferred Stock 0.04
Diversification does not guarantee a profit or eliminate the risk of loss.
Different asset class returns vary through market cycles3
Performance of a $10,000 investment (June 30, 1996 to June 30, 2016)
• Invesco Equity and Income Fund
• Bonds: Barclays U.S. Aggregate Index
• Cash: Consumer Price Index
• Stocks: SP 500 Index
• US Treasuries: US 3-Month Treasury Bills Index
10,000
20,000
30,000
40,000
50,000
$60,000
$30,156
Return: 5.67%
$15,467
Return: 2.20% $14,972
Return: 2.04%
$45,477
Return: 7.87%
$50,913
Return: 8.48%
StocksInvesco
Equity and
Income Fund
US
Treasuries
Bonds Cash (adjusted
for inflation)
Sources: Morningstar Inc, Lipper Inc. Returns are annualized. Past performance is no guarantee of future results. Performance
shown for Invesco Equity and Income Fund is for Class A shares and does not include payment of the maximum sales charge
of 5.50%; if it did, the results would have been lower. Important note: On the surface, conservative savings vehicles such as
Treasury Bills and certificates of deposit (CDs) may appear attractive because they fluctuate less. But you need to balance these
considerations with a realistic evaluation of how you want your investments to grow. CDs offer a guaranteed return of principal over
a stated period of time and a fixed rate of interest. They are typically issued by institutions whose deposits are insured. The income
and principal payments of US government bonds are backed by the full faith and credit of the US government if held to maturity.
Mutual fund shares may be more volatile than other investments. They are not insured, and the value of shares, when redeemed,
may be more or less than what you originally paid for them. Accordingly, it is possible to lose money in a mutual fund investment.
Average annual total returns (%)
Invesco Equity and Income Fund Class A shares as of June 30, 2016
1-year 3-year 5-year 10-year Inception (8/3/1960)
Without sales charge –1.85 6.31 7.71 6.01 10.12
With max 5.50% sales charge –7.29 4.32 6.49 5.41 10.01
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower
or higher. Visit invesco.com for the most recent month end performance. Performance figures reflect reinvested distributions
and changes in net asset value (NAV). Performance shown at NAV does not include applicable front-end sales charge. If sales
charges had been reflected, performance would be lower. Investment return and principal value will vary so that you may have
a gain or a loss when you sell shares. Fund performance reflects any applicable fee waivers and/or expense reimbursements.
Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. The
gross expense ratio is 0.81% for Class A shares. The net expense ratio is 0.80% for Class A shares. Expenses are as of the
fund’s fiscal year end as outlined in the fund’s current prospectus.
Net = gross annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in
effect through at least Sept. 30, 2016. See current prospectus for more information.
1 See PFS Investments “Suitability Guide Approved Funds List” (SB-72) for guidance. This is found in the Operations Support area on the Asset Management Page
of POL in the Approved Funds section.
2 As of June 30, 2016. Subject to change without notice.
3 While stocks typically entail greater risk and experience more fluctuations, they have historically outpaced bonds and cash over longer periods
9. Invesco client guide 9
Experienced
leadership2
Duy Nguyen, CFA, CAIA
23 years of financial
industry experience
Jacob Borbridge,
CFA, CAIA
12 years of financial
industry experience
1 Holdings are a target allocation that funds are rebalanced to every quarter. Holdings are subject to change and are not buy/sell recommendations.
Totals may not equal 100% due to rounding.
Percentages represent the strategic weights to which the portfolio is rebalanced on a quarterly basis.
2 As of June 30, 2016. Subject to change without notice.
Class A: Invesco Conservative Allocation Fund (CAAMX), Invesco Moderate Allocation Fund (AMKAX), Invesco Growth Allocation Fund (AADAX)
Invesco asset allocation funds allocation1
Invesco Conservative
Allocation Fund
Invesco Moderate
Allocation Fund
Invesco Growth
Allocation Fund
Lower Potentialreturns Higher
29.85%
Stocks
59.60%
Bonds
10.02%
Alternative
54.08%
Stocks
35.42%
Bonds
10.13%
Alternative
73.14%
Stocks
15.28%
Bonds
10.98%
Alternative
Lower Risk Higher
Conservative
allocation (%)
Moderate
allocation (%)
Growth
allocation (%)
US stocks 24.05 40.88 53.99
Invesco American Franchise Fund 2.49 4.44 5.98
Invesco Comstock Fund 0.00 4.46 5.96
Invesco Diversified Dividend Fund 7.14 9.67 11.60
Invesco Endeavor Fund 1.93 1.92 2.42
Invesco Equally-Weighted SP 500 Fund 6.07 8.00 9.99
Invesco Growth and Income Fund 3.96 0.00 0.00
Invesco Long/Short Equity Fund 0.00 1.91 3.05
Invesco Small Cap Equity Fund 0.00 1.93 2.97
PowerShares Russell Top 200 Pure Growth ETF 2.45 4.45 5.94
PowerShares SP Mid Cap Low Vol ETF 0.00 2.07 3.04
PowerShares SP Small Cap Low Vol ETF 0.00 2.04 3.04
International stocks 5.80 13.20 19.15
Invesco Developing Markets Fund 0.00 1.53 2.55
Invesco International Companies Fund 0.00 2.01 3.02
Invesco International Growth Fund 2.93 4.86 7.83
PowerShares FTSE RAFI Dev Mkts ex-US ETF 2.87 4.79 5.76
Bonds 59.60 35.42 15.28
Invesco Core Plus Bond Fund 18.11 10.04 3.96
Invesco Emerging Mkt Local Currency Debt Fund1
4.92 3.00 1.94
Invesco Floating Rate Fund 4.98 1.99 0.00
Invesco High Yield Fund 6.01 3.50 0.00
Invesco Low Volatility Emerging Markets Debt Fund 0.00 1.51 2.53
Invesco Short Duration Inflation Protected Fund 4.90 2.43 0.00
Invesco Short Term Bond Fund 3.91 2.92 1.92
Invesco U.S. Mortgage Fund 7.85 5.00 2.47
PowerShares 1-30 Laddered Treasury ETF 6.03 5.04 2.46
PowerShares LadderRite 0-5Yr Corp Bond ETF 2.88 0.00 0.00
Alternatives 10.02 10.13 10.98
Invesco All Cap Market Neutral Fund 2.36 3.00 3.94
Invesco Balanced-Risk Allocation Fund 4.60 4.58 4.53
Invesco Global Real Estate Income Fund 3.07 2.55 2.51
10. 10
1 The model portfolios were constructed for Primerica by Ibbotson Associates, a Morningstar®
Company, and are endorsed by Primerica.
These allocations might not be suitable for all investors. Diversification does not guarantee a profit or eliminate the risk of loss.
Model portfolios
Primerica model portfolios1
Primerica is committed to helping you achieve your goals through the model
portfolios listed below:
Plus portfolio Premium portfolio
Income portfolio (%) Income portfolio (%)
• Invesco Core Plus Bond Fund
A (ACPSX)
35 • Invesco Core Plus Bond Fund
A (ACPSX)
35 • Invesco International Growth
Fund A (AIIEX)
6
• Invesco Growth and Income
Fund A (ACGIX)
24 • Invesco Equity and Income
Fund A (ACEIX)
15 • Invesco American Franchise
Fund A (VAFAX)
5
• Invesco Corporate Bond Fund
A (ACCBX)
20 • Invesco Gov’t Money Market
Cash Reserves Fund (AIMXX)
13 • Invesco High Yield Fund A
(AMHYX)
4
• Invesco Gov’t Money Market
Cash Reserves Fund (AIMXX)
15 • Invesco Corporate Bond Fund
A (ACCBX)
10 • Invesco Diversified Dividend
Fund A (LCEAX)
3
• Invesco International Growth
Fund A (AIIEX)
6 • Invesco American Value Fund
A (MSAVX)
6 • Invesco International Total
Return Fund A (AUBAX)
3
Conservative growth portfolio (%) Conservative growth portfolio (%)
• Invesco Growth and Income
Fund A (ACGIX)
41 • Invesco Core Plus Bond Fund
A (ACPSX)
21 • Invesco International Growth
Fund A (AIIEX)
9
• Invesco Core Plus Bond Fund
A (ACPSX)
38 • Invesco Corporate Bond Fund
A (ACCBX)
15 • Invesco American Value Fund
A (MSAVX)
8
• Invesco Gov’t Money Market
Cash Reserves Fund (AIMXX)
11 • Invesco Diversified Dividend
Fund A (LCEAX)
12 • Invesco American Franchise
Fund A (VAFAX)
8
• Invesco International Growth
Fund A (AIIEX)
10 • Invesco Equity and Income
Fund A (ACEIX)
12 • Invesco Comstock Fund A
(ACSTX)
3
• Invesco Gov’t Money Market
Cash Reserves Fund (AIMXX)
9 • Invesco Small Cap Equity Fund
A (SMEAX)
3
Moderate growth portfolio (%) Moderate growth portfolio (%)
• Invesco Core Plus Bond Fund
A (ACPSX)
35 • Invesco Core Plus Bond Fund
A (ACPSX)
20 • Invesco American Value Fund
A (MSAVX)
12
• Invesco Growth and Income
Fund A (ACGIX)
30 • Invesco Corporate Bond Fund
A (ACCBX)
16 • Invesco Comstock Fund A
(ACSTX)
6
• Invesco American Franchise
Fund A (VAFAX)
20 • Invesco International Growth
Fund A (AIIEX)
14 • Invesco Mid Cap Core Equity
Fund A (GTAGX)
3
• Invesco International Growth
Fund A (AIIEX)
15 • Invesco Diversified Dividend
Fund A (LCEAX)
13 • Invesco Small Cap Equity Fund
A (SMEAX)
3
• Invesco American Franchise
Fund A (VAFAX)
13
Growth portfolio (%) Growth portfolio (%)
• Invesco Growth and Income
Fund A (ACGIX)
37 • Invesco International Growth
Fund A (AIIEX)
18 • Invesco Comstock Fund A
(ACSTX)
7
• Invesco American Franchise
Fund A (VAFAX)
29 • Invesco American Franchise
Fund A (VAFAX)
17 • Invesco Equally Weighted
SP 500 Fund A (VADAX)
7
• Invesco International Growth
Fund A (AIIEX)
19 • Invesco Core Plus Bond Fund
A (ACPSX)
14 • Invesco Growth and Income
Fund A (ACGIX)
5
• Invesco Core Plus Bond Fund
A (ACPSX)
15 • Invesco Diversified Dividend
Fund A (LCEAX)
13 • Invesco Mid Cap Core Equity
Fund A (GTAGX)
3
• Invesco American Value Fund
A (MSAVX)
13 • Invesco Small Cap Equity Fund
A (SMEAX)
3
Aggressive growth portfolio (%) Aggressive growth portfolio (%)
• Invesco Growth and Income
Fund A (ACGIX)
37 • Invesco International Growth
Fund A (AIIEX)
21 • Invesco Equally Weighted
SP 500 Fund A (VADAX)
8
• Invesco American Franchise
Fund A (VAFAX)
25 • Invesco American Franchise
Fund A (VAFAX)
20 • Invesco Growth and Income
Fund A (ACGIX)
6
• Invesco International Growth
Fund A (AIIEX)
23 • Invesco Diversified Dividend
Fund A (LCEAX)
14 • Invesco Small Cap Equity Fund
A (SMEAX)
5
• Invesco Small Cap Equity Fund
A (SMEAX)
15 • Invesco American Value Fund
A (MSAVX)
13 • Invesco Mid Cap Core Equity
Fund A (GTAGX)
5
• Invesco Comstock Fund A
(ACSTX)
8
11. Invesco client guide 11
Custom portfolios
Customizing portfolios
Invesco offers a diverse selection of traditional and alternative strategies across all
major equity, fixed income and alternative asset classes — and within asset allocation
solutions. These strategies cover both domestic and international markets. Connect
the returns of individual asset classes to illustrate trends over the past 10 years.
What you will see is that the Invesco Equity and Income Fund may be appropriate
for investors looking for consistency over the long term.
Historical asset class returns (%): Stocks, bonds or both?
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Worst Performers Best
Real estate
35.06
Large-cap
growth
11.81
Fixed
income
5.24
Mid-cap
growth
46.29
Small-cap
growth
29.09
Real estate
8.28
Real estate
19.70
Small-cap
growth
43.30
Real estate
28.03
Large-cap
growth
5.67
International
26.34
Mid-cap
growth
11.43
Equity and
Income Fund
-24.78
Large-cap
growth
37.21
Real estate
27.95
Fixed
income
7.84
Mid-cap
value
18.51
Mid-cap
growth
35.74
Mid-cap
value
14.75
Real estate
2.83
Small-cap
value
23.48
International
11.17
Small-cap
value
-28.92
Small-cap
growth
34.47
Mid-cap
growth
26.38
Large-cap
growth
2.64
Small-cap
value
18.05
Small-cap
value
34.52
Large-cap
value
13.45
Fixed
income
0.55
Large-cap
value
22.25
Small-cap
growth
7.05
Large-cap
value
-36.85
Mid-cap
value
34.21
Mid-cap
value
24.75
Large-cap
value
0.39
Large-cap
value
17.51
Large-cap
growth
33.48
Large-cap
growth
13.05
Mid-cap
growth
-0.2
Mid-cap
value
20.22
Fixed
income
6.97
Real estate
-37.73
International
31.78
Small-cap
value
24.50
Equity and
Income Fund
-1.23
International
17.32
Mid-cap
value
33.46
Mid-cap
growth
11.90
International
-0.81
Small-cap
growth
13.35
Equity and
Income Fund
3.26
Large-cap
growth
-38.44
Real estate
27.99
Large-cap
growth
16.71
Mid-cap
value
-1.38
Mid-cap
growth
15.81
Large-cap
value
32.53
Equity and
Income Fund
9.07
Small-cap
growth
-1.38
Equity and
Income Fund
12.53
Large-cap
value
-0.17
Mid-cap
value
-38.44
Equity and
Income Fund
23.51
Large-cap
value
15.51
Mid-cap
growth
-1.65
Large-cap
growth
15.26
Equity and
Income Fund
24.96
Fixed
income
5.97
Equity and
Income Fund
-2.35
Mid-cap
growth
10.66
Mid-cap
value
-1.42
Small-cap
growth
-38.54
Small-cap
value
20.58
Equity and
Income Fund
12.39
Small-cap
growth
-2.91
Small-cap
growth
14.59
International
22.78
Small-cap
growth
5.60
Large-cap
value
-3.83
Large-cap
growth
9.07
Small-cap
value
-9.78
International
-43.38
Large-cap
value
19.69
International
7.75
Small-cap
value
-5.50
Equity and
Income Fund
12.88
Real estate
2.86
Small-cap
value
4.22
Mid-cap
value
-4.78
Fixed
income
4.33
Real estate
-15.69
Mid-cap
growth
-44.32
Fixed
income
5.93
Fixed
income
6.54
International
-12.14
Fixed
income
4.22
Fixed
income
-2.02
International
-4.90
Small-cap
value
-7.47
Source: Lipper Inc. as of Dec. 31, 2015. International is represented by the Morgan Stanley Capital International (MSCI) EAFE Index. Large-Cap Growth is
represented by the Russell 1000®
Growth Index. Large-Cap Value is represented by the Russell 1000®
Value Index. Fixed Income is represented by the
Barclays US Aggregate Index. Real Estate is represented by FTSE NAREIT All Equity REITs Index. Small-Cap Growth is represented by the Russell 2000®
Growth Index. Small-Cap Value is represented by the Russell 2000®
Value Index. Mid-Cap Growth is represented by the Russell Midcap Growth®
Index.
Mid-Cap Value is represented by the Russell Midcap®
Value Index.
This table is presented for information purposes only. Performance shown for Invesco Equity and Income Fund is for Class A shares and does not
include payment of the maximum sales charge of 5.50%; if it did, the results would have been lower.
Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss. Performance figures reflect reinvested dividends. The table depicts
annual returns for various asset classes over the past 10 years, ranked from best to worst each year. Each asset class is color coded for easy tracking. Well
known, industry-standard indexes are used as proxies for each asset class. The indexes and their returns are not representative of any Invesco funds. The
indexes do not include any expenses, fees or charges and are unmanaged and should not be considered investments. An investment cannot be made
directly in an index. See important index definitions on the back cover.
Investments focused in a particular sector, such as real estate, are subject to greater risk, and are more greatly impacted by market volatility, than more
diversified investments. Fixed-income products are subject to risk, including, but not limited to, the effects of changing interest rates. The price of equity
securities may decline in response to, among other things, investor sentiment or general economic market conditions. Investing in securities of small- and
medium-sized companies may involve greater risk than is customarily associated with investing in large companies. Foreign securities have additional risks,
including exchange rate changes, political and economic upheaval, relative lack of information, relatively low market liquidity, and the potential lack of strict
financial and accounting controls and standards. Growth stocks tend to be more sensitive to changes in their earnings and can be more volatile. Value stocks
tend to be inexpensive relative to their earnings or assets compared to other types of stocks and may never realize their full value.
Past performance is no guarantee of future results and current performance may be lower or higher than the figures shown. For the most recent month-end
performance figures, please visit invesco.com/performance. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more
or less than their original cost. Performance shown at NAV does not include applicable front-end sales charge. If sales charges had been reflected, performance would
be lower. Had fees not been waived and/or expenses reimbursed in the past, returns would have been lower. Performance of other share classes will vary.
14. 14
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Bridging the digital divide
Invesco continues to bring Industry leading technology and commentary from global
outlooks to portfolio manager’s market insight to webcasts on specific topics like energy
and real estate. Invesco strives to bring timely and relevant information direct to
financial advisors and their clients. Below are just some of the ways that Invesco is
bridging the digital divide.
Invesco’s online resources
Invesco continually strives to bring you timely, valuable
information that is easy to use and beneficial.
We offer immediate access to a wealth of tools
and resources via invesco.com/us.
Gain knowledge on:
•• Current market updates
•• Retirement planning insights and tools
•• Invesco products directly from investment specialists
Easy
as
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Easy for you. Easy for your clients.
Easy
as
Invesco Portfolio IllustratorSM
Easy for you. Easy for your clients.
Portfolio Illustrator: Tool designed to help advisors
build a client’s portfolio with ease.
Here’s how it works:
1. Select the client’s risk tolerance
2. Choose the investments
3. Customize the proposal
4. Review and print
To learn more about the Invesco Portfolio Illustrator,
visit the advisor site of invesco.com/tools or contact
your sales team.
On the Go with Invesco App
The Invesco app for iPad®
gives you access to the
information, insights and ideas you need — on the go.
Find a product that meets your needs across a
comprehensive range of asset classes.
Personalize your view of product data through interactive
charts and graphs.
Build your briefcase with Invesco products and
commentaries and share them with clients and colleagues.
Gain insights and analysis from our investment
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Access exclusive business-building ideas from
Invesco Consulting.
15. Invesco client guide 15
About risk
Page 12 risks
Fixed income products are subject to risk, including credit risk of the issuer and the effects of changing interest rates.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the
bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest.
The risks of investing in securities of foreign issuers can included fluctuations in foreign currencies, foreign currency exchange controls,
political and economic instability, differences in financial reporting, differences in securities regulation and trading and foreign taxation issues.
Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or
restricted as to resale.
Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and
leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives
should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate.
You can lose money.
Each fund is subject to certain unique risks, and some funds may employ the use of derivatives or enhanced investment techniques that could
experience greater volatility.
There is no assurance that these mutual funds will achieve their investment objectives. Funds are subject to market risk, which is the possibility
that the market values of securities owned by these funds will decline and that the value of the fund shares may therefore be less than what you
paid for them. Accordingly, you can lose money investing in these funds. Please be aware that these funds may be subject to certain additional
risks. See the prospectus for complete details about the risks associated with each fund.
Invesco Equity and Income Fund risks
Convertible securities may be affected by market interest rates, the risk that the issuer will default, the value of the underlying stock or the right
of issuer to buy back the convertible securities.
An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the
issuer’s credit rating.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage,
counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign
taxation issues.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
Preferred securities may include provisions that permit the issuer to defer or omit distributions for a certain period of time, and reporting the
distribution for tax purposes may be required, even though the income may not have been received. Further, preferred securities may lose
substantial value due to the omission or deferment of dividend payments.
A value style of investing is subject to the risk that the valuations never improve or that the returns will trail other styles of investing or the
overall stock markets.
The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an
investment in the Fund.
Invesco Conservative Allocation Fund, Invesco Moderate Allocation Fund and Invesco Growth Allocation Fund risks
Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the
issuer’s credit rating.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign
taxation issues.
The Fund is subject to the risks of the underlying funds. Market fluctuations may change the target weightings in the underlying funds and
certain factors may cause the Fund to withdraw its investments therein at a disadvantageous time.
An investment in exchange-traded funds (ETFs) may trade at a discount to net asset value, fail to develop an active trading market, halt trading
on the listing exchange, fail to track the referenced index, or hold troubled securities. ETFs may involve duplication of management fees and
certain other expenses. Certain of the ETFs the fund invests in are leveraged, which can magnify any losses on those investments.
Commodities may subject an investor to greater volatility than traditional securities such as stocks and bonds and can fluctuate significantly
based on weather, political, tax, and other regulatory and market developments.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage,
counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an
investment in the Fund.
Invesco Moderate Allocation Fund and Invesco Growth Allocation Fund risks
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and
political conditions.
Invesco Conservative Allocation Fund
There is a heightened risk that the Federal Reserve Board (FRB) and central banks may raise the federal funds and equivalent foreign rates due
to the potential “tapering” of the FRB’s quantitative easing program and other similar foreign central bank actions, which may expose fixed
income investments to higher volatility and reduced liquidity, particularly those with longer maturities. As a result, the Fund’s investments and
share price may decline.
16. 1 Source: Invesco. Invesco Ltd. Client-related data, investment professional, employee data and AUM are as of June 30, 2016, and include all assets under
advisement, distributed and overseen by Invesco. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products.
ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and
Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products.
Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank. The entities listed are each indirect, wholly owned subsidiaries of Invesco Ltd., except
ALPS Distributors Inc., Deutsche Bank and Invesco Great Wall in Shenzhen, which is a joint venture between Invesco and Great Wall Securities, and the Huaneng
Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and Invesco WLR Limited. Please consult
your Invesco representative for more information.
Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the
investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should
ask their advisors for a prospectus/summary prospectus or visit invesco.com/fundprospectus.
You could lose money by investing in the Fund. Although the Fund seeks to preserve your investment at $1.00 per share,
it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to
the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from
those of other Invesco investment professionals.
Index definitions
It is not possible to invest directly in an index. SP 500 Index is a market-weighted index of 500 widely held common stocks of companies chosen for market size,
liquidity and industry group representation. Barclays US Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed
income bond market. US 3-Month Treasury Bills is an unmanaged index representative of three-month Treasury bills. This index was used to represent US
Treasuries in the example. The Consumer Price Index is an index representing the rate of inflation of US consumer prices as determined by the US Bureau of
Labor Statistics. This index was used to represent cash (adjusted for inflation) in the example shown.
Russell 1000®
Growth Index is an unmanaged index considered representative of large-cap growth stocks. Russell 1000®
Value Index is an unmanaged index
considered representative of large-cap value stocks. Russell 2000®
Growth Index is an unmanaged index considered representative of small-cap growth stocks.
Russell 2000® Value Index is an unmanaged index considered representative of small-cap value stocks. Russell Midcap®
Growth Index is an unmanaged index
considered representative of mid-cap growth stocks. Russell Midcap®
Value Index is an unmanaged index considered representative of mid-cap value stocks. The
Russell indexes are trademarks/service marks of Frank Russell Co. Russell®
is a trademark of the Frank Russell Co. The MSCI EAFE®
Index is an unmanaged index
considered representative of stocks of Europe, Australasia and the Far East. The FTSE NAREIT Equity REITs Index is an unmanaged index considered
representative of US REITs.
invesco.com/us PFSCOV-BRO-1 08/16 Invesco Distributors, Inc. US10028
A strong legacy of investment management
A strong legacy of
investment management,
with an investment history
dating to the:
Assets Under
Management1
($ in billions):
Countries where Invesco
has on-the-ground
presence:1
1940s $779.6 20
