Invesco Canada blog

Insights, commentary and investing expertise

Six things to expect from this international fund


November 9, 2017
Subject | Active management | Trimark

Generally speaking, many of today’s global mutual funds are heavy on U.S. equities, specifically large-cap, blue-chip companies. It is very difficult to outperform passive products with this approach, especially given the low-fee options currently available. Trimark International Companies Fund is different, in this regard and many others.

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Working capital: The worst kind of expense


July 20, 2017
Subject | Active management | Institutional | Trimark

As active portfolio managers, we seek to identify and exploit inefficiencies in the marketplace. One major inefficiency, in my view, is the common fixation on earnings-based valuation metrics. Focusing on free cash flow, rather than net income, EBIT or EBITDA, allows us to find valuation arbitrage opportunities based on gaps in accounting earnings and free cash flow.

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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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Brexit sell-off creates entry point

In the lead-up to the referendum on the U.K.’s continued membership in the European Union, certain British bookmakers were offering four-to-one odds on bets the U.K. would opt to exit, meaning they anticipated a mere 20% probability of a leave win. At the same time, both sides were running neck and neck in the polls, rationally implying around a 50% chance of a leave vote result. This opportunity to receive a profit equal to four times one’s initial investment on an outcome estimated to be 50% likely, while losing only one’s initial investment the other one time out of two was an obvious example of a mispriced bet. Similar to the U.K. bookmakers mispricing of the Brexit bet, the market occasionally misprices stocks, placing the odds either in favour of or against the investor.

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What will the impact of a “Brexit” be on European equities?

As “Brexit” dominates news reports and media commentary, there has been a significant sell-off in both U.K. and European equities ahead of the U.K.’s referendum on its continued EU membership. In addition, there has been significant depreciation of the pound. Despite this volatility leading up to the vote, I believe that either outcome will ultimately have little impact on the U.K. economy over the long term.

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Brexit

Question: How do you view the oil & gas sector today?

Question: With investor concerns about China, interest rates and oil prices taking centre stage and valuations considered fairly valued, how do you view the oil and gas sector today? Are you currently invested in oil and gas companies in Trimark Europlus Fund?

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The world’s biggest brewer is about to get bigger


November 18, 2015
Subject | Active management | Trimark

After weeks of ongoing negotiation, Anheuser-Busch InBev (AB InBev) announced last week that it completed an agreement to acquire its closest rival, SABMiller PLC, for nearly US$106 billion (subject to regulatory approvals). We view the acquisition as a positive for the company. Here’s why.

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Is there a merger brewing in the beer world?


September 23, 2015
Subject | Active management | Trimark

Last week, Anheuser-Busch InBev announced that it has approached SABMiller regarding a potential takeover. It is unclear whether the two companies have entered into serious discussions at this point, and officially, no offer has been made. There is no certainty that a transaction will occur, as there are a number of considerations involved.

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