**Invesco Diversified Dividend Fund: Quarterly Performance and Market Outlook**
Invesco’s Diversified Dividend Fund delivered a positive return for the quarter but underperformed the Russell 1000 Value Index.
**Market Overview**
US equity markets surged to record highs, driven by momentum in artificial intelligence (AI), a resilient economy, and the US Federal Reserve’s (the “Fed”) monetary easing. Despite persistent inflation and ongoing geopolitical and policy uncertainties, equities rallied strongly throughout the period.
**Fund Positioning**
The fund maintains a balanced allocation across sectors and industries, focusing on long-term growth areas and companies with sustainable free cash flow and healthy balance sheets. This strategy results in an overall quality bias and defensive characteristics.
In an environment marked by high uncertainty and the possibility of muted or even negative returns, we believe investors will place greater emphasis on companies with stable dividends.
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### Key Takeaways
– **Navigating a Shifting Market:** US equity markets hit record highs, fueled by AI advancements, economic resilience, and Fed monetary easing.
– Equities rallied despite challenges such as persistent inflation and geopolitical uncertainties.
– The fund emphasizes companies with strong fundamentals, sustainable free cash flow, and healthy balance sheets, aiming for a quality and defensively positioned portfolio.
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**About Invesco**
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. To stay informed with expert investment perspectives, sign up for the [Invesco US Blog](#) and be the first to know about our latest insights.
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### Disclosure
Before investing, carefully read the prospectus and/or summary prospectus and consider the investment objectives, risks, charges, and expenses. The information provided is for educational purposes only and does not constitute a recommendation regarding the suitability of any investment strategy for a particular investor.
Invesco does not provide tax advice. Tax information contained herein is general and not exhaustive. Federal and state tax laws are complex and constantly changing. Please consult your tax or legal advisor regarding your individual situation.
The opinions expressed are those of the authors, based on current market conditions, and are subject to change without notice. They may differ from those of other Invesco investment professionals.
**Important:**
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Data provided is by Invesco unless otherwise noted. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products and collective trust funds. Invesco Advisers, Inc. and other affiliated advisers provide investment advisory services and do not sell securities.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, a wholly owned subsidiary of Invesco Ltd. ©2015 Invesco Ltd.
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