In this episode, we explore how large-cap value investing fits into a well-structured 401(k) plan investment menu with the help of Devin Armstrong, co-lead manager of the Invesco Comstock Fund, who is Senior Portfolio Manager and Director of U.S. Value Research at Invesco.
With market uncertainty and shifting economic conditions, value investing remains a compelling strategy for long-term retirement savers. Armstrong breaks down why large-cap value stocks help to diversify 401(k) plan holdings, and walks us through the team’s unique contrarian approach and classic value investing techniques that distinguish the Invesco Comstock Fund.
Key Insights
Importance of Large-Cap Value in 401(k) Plans
Large-cap value investing plays a crucial role in 401(k) investment menus by providing diversification and long-term stability. As market cycles shift between growth and value investing, maintaining exposure to both styles ensures a balanced portfolio and mitigates risk.
Market Shifts and Investment Strategy
The economic environment is changing, with inflation and rising interest rates creating a more favorable backdrop for value stocks. Historical data shows that during inflationary periods, value stocks tend to outperform growth stocks, making them a strong consideration for retirement portfolios.
Invesco’s Contrarian Approach
The Invesco Comstock Fund follows a disciplined, valuation-driven approach. The team seeks undervalued companies facing temporary challenges, aiming to capitalize on market dislocations while maintaining a long-term investment perspective.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
