Invesco Canada blog

Insights, commentary and investing expertise

Investing in emerging markets: Multinationals vs. local


March 29, 2018
Subject | Active management | Institutional

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

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

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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Emerging markets as a source of corporate revenue


February 9, 2018
Subject | Active management | Macro views

As you may well know by now, Trimark portfolio managers are not macro investors. We don’t spend our time formulating top-down macro views. Instead, we research individual companies to find those that we believe offer the best return potential.

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What does market volatility mean for fixed income?

Market expectations of inflation have risen in recent days, after signs of wage growth – often seen as a harbinger of inflation – appeared in the January jobs report. We at Invesco Fixed Income believe investor concerns that inflation is finally showing signs of life have helped drive interest rates higher and impacted credit markets, where worries over higher interest rates (and their potential impact on companies) have caused declines in stock markets and other risky assets.1

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A rising tide for fixed income?

In my recent blog on the impact of the tax reform, I explained why I believe the new tax law should be extremely supportive of the U.S. investment grade (IG) bond market, including provisions that could lead to reduced supply. Looking beyond IG, the news appears to look good for other fixed income sectors as well.

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Why international stock markets should continue to outperform U.S.


January 31, 2018
Subject | Active management | Invesco

2017 marked only the second time in the last eight years that international markets outperformed the U.S., with the MSCI All Country World Index (ACWI) ex-U.S. returning 27.19%, and the S&P 500 Index returning 21.83%.1 So is this the beginning of a sustained shift in outperformance? On one hand, there is a list of risks facing international markets, from Brexit to a potential slowdown in China. But on the other hand, international companies have recently been trading at a substantial valuation discount compared with the U.S., and we have been seeing strong profit expansion.

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Hiding from volatility? You might be missing out


January 29, 2018
Subject | Active management

In many ways, 2017 was an exceptional year. The U.S. equity market did better than most expected, despite concerns about the new President and worries about the economy, valuations, Brexit, North Korea and the Middle East.

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Tax reform: A year-end bonus for fixed income?

Despite the near non-stop drama of the legislative process, we ended December with the U.S. Tax Cut and Jobs Act of 2017 being signed into law. What does this mean for fixed income investors? In my opinion, the news is overwhelmingly positive for the U.S. investment grade market; here are four reasons why.

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2018 Investment Outlook: Balancing cyclical and structural influences in multi-asset investing

Despite what has been an incredibly tumultuous, unpredictable and at times unimaginable period for global politics and an initially spluttering return to global growth, central banks appear to have successfully steered markets through the worst, ironing out the kinks and at times acting together to present a semblance of global harmony. Sometimes, markets have appeared to simply ignore events that in less interesting times would have caused a rout. Somehow though, it still doesn’t feel that the aftermath of the financial crisis is fully behind us, nearly 10 years on, and we believe it is vital to consider both cyclical and structural forces in building our economic and market outlook.

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2018 Investment Outlook: Meeting the diversification challenge

When traditional asset classes move in tandem, building a diversified portfolio presents a challenge. Duy Nguyen, Portfolio Manager and CIO, Invesco Global Solutions Development & Implementation Team, explains how he will approach portfolio construction in 2018.

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2018 Investment Outlook: European equities: Plenty of scope for active managers to add value

Europe is a rich, highly developed part of the world which is home to a vast range of companies. However, on occasion it still seems to struggle to attract attention from serious investors around the world. There’s always a handy excuse: “Why bother when it’s only a play on more interesting parts of the world?” or “There’s never any earnings growth, is there?” or “Don’t the politics make it un-investable?” Wrong.

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