Invesco Canada blog

Insights, commentary and investing expertise

3 reasons for active management in EM

Now that passive index strategies are ubiquitous across markets, I am pleased to see that the overall active vs. passive debate is over, replaced by a more nuanced discussion about where each approach makes sense in an investor’s portfolio. I am of the firm belief that emerging markets is an investing space in which active management is not only preferred, but in most cases, vital. Here are my three main reasons why.

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Conviction key to long-term success


February 3, 2017
Subject | Active management | Trimark

We believe that high-conviction investing is key to generating excess long-term returns, and this belief guides our research efforts and investing decisions. There is academic research to support this, showing that among actively managed funds, those with high conviction managers tend to outperform. In this blog post I’ll explain why the Trimark Global Equities team invests with conviction, highlighting two extensive studies of portfolio managers and their returns.

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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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The Trump win: What does it mean for portfolios?


November 15, 2016
Subject | Active management | Macro views | Trimark

In a stunning defeat to heavily favoured Democratic candidate Hillary Clinton, Donald Trump is set to become the 45th U.S. President in January. Trump achieved victories in states that, according to recent tradition, have preferred Democratic presidential candidates –   including Wisconsin, Michigan and Ohio. Not only did Trump capture more votes than Republican candidate Mitt Romney during the 2012 presidential election, but he also capitalized on Hillary Clinton’s inability to carry Democratic congressional districts where Barack Obama achieved resounding victories in 2012.

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