Invesco American Franchise Fund Class Y (VAFIX)

Overview

The fund is an investment entity that focuses primarily on investing in securities of U.S. issuers. It commits, under normal circumstances, at least 80% of its net assets, alongside any borrowed funds for investment purposes, in securities and derivatives that closely resemble the economic characteristics of these securities. The fund aims to engage in investments that its portfolio managers believe have the potential for earnings or revenue growth. Additionally, it allows for up to 20% investment in securities of foreign issuers, indicating a minor allocation towards international exposure. This fund is not diversified, suggesting that it may invest more significantly in fewer securities, which could indicate a higher risk and reward strategy.

Products and Services

• Investment in U.S. Issuer Securities

  The fund predominantly invests in securities from U.S. issuers, comprising at least 80% of its net assets. This includes a wide range of securities such as stocks and bonds, prioritizing investments that the fund's portfolio managers assess as having growth potential in earnings or revenue. By focusing on such securities, the fund aims to capitalize on the growth dynamics of the U.S. market.

• Derivatives and Similar Instruments

  As part of its strategy, the fund invests in derivatives and other financial instruments that mimic the economic characteristics of U.S. issuer securities. These instruments may include futures, options, and swaps, providing the fund with leverage and hedging capabilities. This approach allows the fund to enhance its portfolio's potential returns and manage risk more effectively.

• Investment in Foreign Issuer Securities

  Up to 20% of the fund's net assets can be allocated to securities of foreign issuers, enabling a diversified investment strategy. This allows investors to gain exposure to international markets, potentially benefiting from global economic growth trends. Investing in foreign securities may also provide diversification benefits, helping to reduce overall portfolio risk.