The Invesco Charter Fund's Class A shares experienced a return of 6.50% at net asset value during the third quarter of 2025, which trailed the Russell 1000 Index's 7.99% return. This relative underperformance largely stemmed from specific stock choices within the information technology, consumer discretionary, and financial sectors. However, stronger stock selection in communication services, materials, and industrials sectors helped to partially offset these results, demonstrating the fund's diversified approach.
The fund's strategic approach remains centered on rigorous valuation discipline, prioritizing companies that exhibit sustainable competitive advantages and possess strong management teams. Sector weightings are carefully managed to stay within a tight +/-3% band relative to the Russell 1000 Index, with consumer staples currently representing the largest overweight position and consumer discretionary the largest underweight. Recent portfolio additions such as ABBV, LECO, and ETN were strategically chosen based on factors like low patent risk and diversified product pipelines for ABBV, benefits from reshoring and robust return on invested capital for LECO, and strong order backlogs indicating future sales potential for ETN.
The Invesco Charter Fund's commitment to thoughtful investment decisions, focusing on resilient companies and maintaining a balanced sector exposure, aims to navigate market fluctuations effectively. By continuously evaluating and adapting its portfolio based on fundamental analysis and strategic insights, the fund strives to deliver long-term value for its investors, always with an eye toward identifying opportunities that align with its disciplined investment philosophy.
