Invesco Canada blog

Insights, commentary and investing expertise

Web stocks, user data abuse and regulation

The past few weeks have been characterized by significant volatility in the share prices of the world’s largest internet companies, which comprised the once-vaunted cohort of top-performing “FANG” stocks. In the span of less than one month, revelations about social networks permitting unscrupulous access to users’ personal data, upcoming regulatory changes in Europe, and increased attention by U.S. lawmakers have caused a swoon in global technology and internet equities.

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Investing in emerging markets: Multinationals vs. local


March 29, 2018
Subject | Active management | Institutional | Trimark

I am often asked why an investor should invest in local businesses in emerging markets instead of putting their money in large multinational companies. For example, why invest in Amorepacific Corp., a Korean cosmetics company, over Revlon, a multinational that derives a portion of its revenue from sales in emerging markets? This is a fair question, and as a long-term global investor, I will outline my thoughts on it in this blog post.

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The increasing role of technology


March 26, 2018
Subject | Active management | Macro views | Trimark

There was a time when asset managers could largely be agnostic to technology. The common justifications were that the space was too esoteric, dynamic and generally difficult to understand. While there is some truth behind these sentiments, the increasing pervasiveness of technology into our lives and into the business models of most enterprises means that avoiding technology has shifted from abscondment to perilousness.

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Why truly active managers aren’t afraid of rising rates

With interest rates starting to rise, many investors are wondering what impact, if any, the move upward might have on their portfolios. We asked Marina Pomerantz, a portfolio manager on the Trimark Global Equities team and Neeraj Khosla, an investment analyst covering emerging-market (EM) equities for the same team, for their views on the current interest-rate environment.

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When geopolitical tension creates opportunities


March 19, 2018
Subject | Active management | Macro views | Trimark

Whether it’s nuclear tensions on the Korean peninsula, revolution in the Ukraine, the Brexit vote in the U.K. or an unpredictable legislative agenda from the Trump administration, there is no shortage of geopolitical issues for investors to consider. However, for us as long-term investors, the question is: When do these stresses create buying opportunities?

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Who’ll be watching the punch bowl in 2018?


December 19, 2017
Subject | Institutional | Invesco | Macro views | Trimark

Last week saw a confluence of central bank meetings and decisions over the course of two days. They revealed central banks that are in the process of – or on the verge of – tightening. I was reminded of former Federal Reserve (Fed) Chair William McChesney Martin, who said the central task of his job was “to take away the punch bowl just when the party gets going.” But is the party really just getting going – or is it getting long in the tooth? And, most importantly, who is the chaperone? And how strict are they?

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2018 Investment Outlook: Global equities: Risks, uncertainties, and opportunities

Short-term forecasting is a fun, but not often a particularly profitable, exercise. To think one can predict what the next year holds is folly, and to assume you could profit from that prognostication is dubious. In 2016, would you have predicted Donald Trump would be inaugurated in 2017 as the next U.S. president? If so, how would you have expected markets to react? Consider everything we’ve seen in the past year or so:

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Three macro trends to be thankful for


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

This week marks Thanksgiving in America. This coming Thursday we will break bread and devour turkey with family and friends and, most importantly, take time to show gratitude for that which is good in our lives. The act of showing gratitude and giving thanks is a universal concept and one that I would like to indulge in this week’s commentary. In that spirit, I take stock of the past year and share with you three market and economic trends for which I am thankful:

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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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Discipline in action: Two companies we like and why


November 7, 2017
Subject | Active management | Trimark

I think it’s important for advisors and investors to truly understand a portfolio manager’s approach, and the best way to do that is to see the discipline in action. In my last blog post, Why EM? Why now? I presented my case for emerging markets and reviewed my approach to investing in these regions. Today, I will discuss two companies we’re invested in, why they made the cut and how they have performed for our investors.

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Nine things to watch in November

Despite October’s reputation as a precarious month for stocks, the equity markets made it through the month without so much as a hiccup, let alone a correction. Last month commemorated the 30th anniversary of the 1987 market drop, but investors did not get spooked by the supposed “October effect.” With October behind us, it is now an opportune time to keep in mind some of the things we will want to look for in November and beyond.

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Say goodbye to closet indexers


November 1, 2017
Subject | Active management | Institutional | Trimark

I’m writing here in response to questions I’ve received from advisors and to piggyback on comments I’ve made at our recent due diligence events. First, I’m going to dispense with the strict “active vs. passive” construct of the current debate. I’ll make my case for the value of true active management and introduce you to the elements of a portfolio that I believe make it truly active. I’m going to cover a lot of ground here, but I’ll do my best to keep it concise.

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Why EM? Why now?


October 19, 2017
Subject | Active management | Trimark

I’ve said it before, and I’ll say it again: I believe investing in emerging markets (EM) is best done using a truly active approach. Performance numbers tell one part of story – I’ll cover the numbers a little later in this post – but other elements of the “why active in EM” story are: managing risk, long-term growth potential, and understanding complex and unfamiliar local markets.

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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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