INVESCO as a PFM issuer, adheres to strict guidelines outlined by Nasdaq, Inc., the Index Provider. With a commitment to investing at least 90% of its assets in securities that form the Underlying Index, Invesco utilizes a proprietary methodology to select U.S. exchange-listed common stocks based on their dividend performance, specifically targeting Dividend AchieversTM with a consistent record of annual dividend increases over the past ten years. As of June 30, 2023, the Underlying Index comprised 406 constituents, showcasing a broad spectrum of market capitalizations. Employing a full replication strategy, the Fund mirrors the composition of its Underlying Index, ensuring proportional investment across its securities. Intent on maintaining diversification, in line with the Investment Company Act of 1940, Invesco aligns its diversification status with that of the Underlying Index, thus potentially transitioning to a non-diversified status in response to market shifts. The Fund avoids undue concentration by investing in any one industry or group of industries, unless such concentration is reflected in the Underlying Index. This approach ensures a balanced and diversified portfolio, in line with its investment objectives.
PFM dividend strategy involves an investment approach focused on generating income for investors through dividend-paying securities. For instance, the Invesco emphasizes dividend achievers—companies that have consistently increased their dividend payouts over the past ten consecutive years—selected according to Nasdaq's proprietary methodology. By investing in such companies, the Fund aims to provide investors with a steady stream of income. Additionally, the Fund's commitment to full replication ensures that it captures the dividend potential of all securities within the Underlying Index, mirroring its dividend performance. This dividend-centric strategy not only offers investors the potential for regular income but also aligns with the Fund's goal of providing long-term growth and stability to its shareholders.
PFM tracking refers to the methodology employed by an investment fund to mirror the performance of its designated benchmark index, in this case, the Underlying Index. With a commitment to replicating the composition and weightings of the securities within the index, PFM tracking aims to closely match the returns of the benchmark. Invesco utilizes a full replication strategy, investing in all securities that comprise the Underlying Index in proportion to their respective weightings. By adhering to this approach, the Fund seeks to provide investors with returns that closely correspond to those of the benchmark index, thereby offering an efficient means of gaining exposure to a specific market segment or investment theme. Through meticulous tracking, PFM issuers aim to fulfill their investment objectives while providing investors with transparency and consistency in performance.
PFM correlation refers to the relationship between the performance of an investment fund, such as the Invesco, and its designated benchmark index, the Underlying Index. The correlation measures the extent to which the returns of the fund mirror those of the index over a specified period. Invesco employs a meticulous tracking strategy, aiming to replicate the composition and weightings of the securities within the Underlying Index. By closely mimicking the index, the fund seeks to achieve a high correlation with its benchmark, thereby providing investors with returns that closely match the index performance. This correlation is crucial for investors seeking to align their investment objectives with a specific market segment or investment theme. Through consistent monitoring and adjustment, PFM issuers strive to maintain a strong correlation with their benchmark, ensuring transparency and reliability in performance for investors.
PFM sector allocation refers to the distribution of investments within different industry sectors by an investment fund like the Invesco. The Fund's sector allocation strategy aims to capitalize on opportunities within specific sectors while managing risk through diversification. Invesco's sector allocation is guided by the composition of the Underlying Index, which may exhibit concentration in certain industries. The Fund concentrates its investments in sectors represented in the Underlying Index, provided that the index reflects a concentration in those industries. However, it avoids excessive concentration in any single sector beyond what is reflected in the index, thereby maintaining a balanced portfolio. By strategically allocating investments across various sectors, Invesco seeks to enhance returns while managing sector-specific risks, ultimately aiming to achieve its investment objectives for shareholders.
PFM exposure refers to the level of investment exposure an investor has to a particular asset class, market segment, or investment theme through an investment fund such as the Invesco. The Fund's exposure strategy is intricately tied to its investment objectives and the composition of its Underlying Index. Invesco aims to provide investors with exposure to a diversified portfolio of securities that closely mirrors the composition of its benchmark index. By employing a full replication methodology, the Fund invests in all securities comprising the Underlying Index in proportion to their weightings, thereby ensuring comprehensive exposure to the index's constituents. This approach allows investors to gain exposure to a specific market segment or investment theme represented by the Underlying Index, providing an efficient means of accessing targeted investment opportunities while diversifying risk. Through meticulous tracking and portfolio management, Invesco seeks to optimize exposure to deliver returns aligned with its investment objectives.
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