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Is Invesco Summit A (ASMMX) a Strong Mutual Fund Pick Right Now?

Zacks Equity Research
·4 min read

On the lookout for a Mutual Fund Equity Report fund? Starting with Invesco Summit A (ASMMX) should not be a possibility at this time. ASMMX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

ASMMX finds itself in the Invesco family, based out of Kansas City, MO. Invesco Summit A made its debut in November of 2005, and since then, ASMMX has accumulated about $335.27 million in assets, per the most up-to-date date available. The fund's current manager, Erik Voss, has been in charge of the fund since June of 2012.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 12.57%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 13.38%, which places it in the middle third during this time-frame.

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When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, ASMMX's standard deviation comes in at 21%, compared to the category average of 15.77%. Over the past 5 years, the standard deviation of the fund is 19.36% compared to the category average of 14.12%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.09, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. ASMMX has generated a negative alpha over the past five years of -1.35, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.

The mutual fund currently has 98.04% of its holdings in stocks, which have an average market capitalization of $470.33 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology

  2. Retail Trade

Turnover is about 47%, so those in charge of the fund make fewer trades than the average comparable fund.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ASMMX is a load fund. It has an expense ratio of 0.99% compared to the category average of 1%. Looking at the fund from a cost perspective, ASMMX is actually cheaper than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

Bottom Line

Overall, Invesco Summit A ( ASMMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.

For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into ASMMX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.


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