AIM Multi-Sector AIAMSX

Morningstar Rating

Fund Research and Analysis

by Jonathan Rahbar

AIM Multi-Sector makes an interesting proposition, but ultimately one that investors can do without.

This offering brings a unique approach to the table. The fund is divided into five sleeves that are run by managers who specialize in the energy, financial services, health care, leisure, and technology sectors. Read more

Kudos

Mandatory annual rebalancing keeps one soaring sector from dominating the entire fund. Read more

Risks

The loss of two seasoned managers leaves half of the management lineup relatively inexperienced.

Sector concentration can tie the fund's fortunes to a narrower swath of the market.

Annual rebalancing may lead to taxable distributions. Read more

Strategy

This fund combines the best ideas from five of AIM's sector funds, namely the leisure, technology, energy, health-care, and financial-services offerings. The managers each pick their best 20 or so stocks for this portfolio, and the fund is rebalanced once a year so that each sleeve of the fund represents a fifth of the fund's total assets. Read more

Management

The five managers behind this fund run other sector-specific offerings at AIM, with varying levels of experience. The fund recently lost Mark Greenberg of AIM Leisure FLISX and John Segner of AIM Energy FSTEX, and their skill will be missed. Derek Taner of AIM Global Health Care GTHIX and Michael Simon of AIM Financial Services each have about five years under their belts, but the others are relatively green. Read more

Inside Scoop

This large-growth fund is divided into five sector-specific sleeves that invest in energy, leisure, technology, financial, and health-care stocks. Initial returns had been strong, but the fund's sector concentration and recent management changes have us passing on the fund. Read more

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