After the portfolio management team’s failure to rebalance Invesco Equally-Weighted S&P 500 on time, we downgraded the fund’s People Pillar rating to Below Average from Average. Since that mistake, Invesco has contributed $105 million to the fund to compensate investors and transferred management responsibilities of this portfolio from the quantitative strategies team to the equity index management team. The new managers’ experience and supporting infrastructure instill confidence that they will be able to efficiently track the benchmark and avoid any mistakes. We are upgrading the fund’s People rating to Above Average from Below Average, resulting in a reaffirmed Morningstar Analyst Rating of Neutral.
Will VADFX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VADFX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VADFX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VADFX’s parent organization’s priorities and whether they’re in line with investors’ interests.