Invesco Canada blog

Insights, commentary and investing expertise

The Bank of Canada (BoC) announced today that the overnight policy rate remained unchanged at 0.5%. There wasn’t much suspense heading into today’s monetary policy meeting as economic data had shown at least some improvement recently and a rate cut did not appear warranted.

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Don’t ignore family-owned businesses


January 16, 2017
Subject | Active management | Invesco

Investors largely concern themselves with traditional publicly traded firms – many of which are controlled by large, institutional investors. Often overlooked are companies that are owned by families and have a portion of their shares available to investors. These family members frequently have controlling interest in the firms that their parents or grandparents (or even they themselves) founded, and have made running these legacy firms their life’s work.

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Senior man supervising while his daughter removing tyre from a car on ramp in automobile garage

Outlook 2017: Global opportunities after a year of surprises

With 2016 complete, global investors can reflect on a volatile year, full of surprises. A double-digit correction in the first six weeks welcomed investors into the new year, sparked by a December 2015 rate hike in the U.S., as well as concerns over the slowing Chinese economy. Post-decline, equities rebounded strongly, aided by global central bank support and surging commodity prices. Emerging -market equities benefited most from the rally in commodities. Central bankers – the Bank of Japan (BoJ), the European Central Bank (ECB) and the U.S. Federal Reserve – soothed investors’ nerves throughout the year with their accommodative policies and/or dovish rhetoric. Other factors driving investor sentiment included rebounding oil prices as well as a strengthening housing market in the U.S.

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KYOTO, JAPAN - APRIL 3, 2014: People enjoy spring season by partaking in nighttime Hanami festivals in Maruyama Park. The annual festivals coincide with the seasonal blooming of the cherry blossoms.

Outlook 2017: Finding opportunities when valuations are high

The prospects for 2017 are likely to be heavily informed by what we have seen in the years since the financial crisis. Since 2008/2009, economic policy has focused almost exclusively on austerity measures and loose monetary conditions, such as ultra-low (and even negative) interest rates and quantitative easing (QE) programs. These measures were intended to slow the growth of debt relative to gross domestic product, to lower-risk free interest rates and stimulate economic activity. Whilst they have been successful to the extent that they have averted a 1929-style depression and a collapse of the banking system, they have been largely ineffective in engendering significant growth in the real economy.

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Finance

Why European banks are so unattractive


December 29, 2016
Subject | Active management | Institutional | Macro views | Trimark

Our Europe-focused mutual fund has consistently stayed away from investments in the European financial sector. Why? European banks and insurers tend to fall short of our measures of a quality business – based on our research, we believe they have lower growth profiles and lower returns on invested capital and tend to offer undifferentiated products. We have differed greatly from the index in this regard, and as a high-conviction investor, I’m very comfortable with that.

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banks