In the third quarter of 2025, the Class A shares of the Invesco Global Opportunities Fund recorded a performance below both the MSCI ACWI SMID Index and its peer average within the Morningstar Global Small-Mid Stock category. This occurred despite an overall upward trend in global equities, fueled by increasing optimism around artificial intelligence advancements, anticipated central bank rate reductions, and robust corporate earnings reports. Notably, U.S. growth stocks demonstrated superior performance compared to their value counterparts during this period.
Technology-driven innovation continues to be a significant force reshaping various sectors of the global economy. This ongoing disruption presents substantial investment prospects, particularly in companies identified as 'premier growth compounders.' The fund remains dedicated to identifying and capitalizing on these opportunities for its shareholders, actively adjusting its portfolio to align with evolving market dynamics. Strategic portfolio changes were enacted to enhance quality and prepare for future market shifts, including the addition of companies like Kikkoman, Roblox, and Ulta Beauty due to their attractive valuations and projected growth trajectories. Conversely, positions in Verisk, Bossard, Darden, and Westinghouse Air Brake were divested, primarily due to sector-specific risks and pressures on profit margins. These adjustments reflect a proactive approach to risk management and a forward-looking investment strategy.
The fund's strategic focus on 'premier growth compounders' amidst a dynamic global landscape highlights a commitment to long-term value creation. By continuously adapting its portfolio to capitalize on technological innovation and growth opportunities, the fund aims to deliver sustainable returns. This disciplined approach underscores the importance of rigorous analysis and timely adjustments in navigating market complexities and striving for investment success.