Invesco Canada blog

Insights, commentary and investing expertise

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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Market review: The Fed takes on the elephant in the room


June 21, 2017
Subject | Institutional | Invesco | Macro views | Trimark

Last Wednesday, the Federal Reserve (Fed) announced it would raise the fed funds rate by a quarter point – its fourth rate hike since starting to tighten in December 2015. This was very much expected and created no surprises for investors. But the far bigger news coming out of the Federal Open Market Committee (FOMC) meeting is that the Fed released its plan to normalize its balance sheet. And with that, the Fed has finally addressed the elephant in the room.

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Looking beyond the active-passive debate

Recently, one of Invesco’s funds – Trimark International Companies Fund – was singled out for praise as an example that true active management can outperform. While the kudos were well-deserved for the team, it appeared as part of a commentary that was otherwise unsympathetic to active management.

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Three ways we manage risk in emerging markets


June 5, 2017
Subject | Active management | Institutional | Trimark

Many investors perceive emerging markets (EM) as a risky place to invest their money. Visions of faraway places with different approaches to business, regulation and governance can be intimidating, but the reality in many EM countries is very different today than it was just twenty years ago. In this blog post, I’m going to discuss the three main ways our funds differ from others when it comes to managing risk and maintaining a strong risk/return profile for our EM investments.

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Softwood lumber saga: Why duties may not be as bad for investors as feared


May 23, 2017
Subject | Active management | Trimark

In a continuation of a long-running trade dispute that dates back to 1982, Canadian softwood lumber exports to the United States were recently hit with an average countervailing duty of 19.88%, with additional anti-dumping duties to be announced in June (expected to be at least another 5%).1 This follows a 10-year period under a Softwood Lumber Agreement that required much less onerous export taxes from Canadian producers.

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