Invesco Canada blog

Insights, commentary and investing expertise

Rob Mikalachki | November 25, 2015

The numbers show why stock picking matters in emerging markets

Trimark portfolio managers have been talking a lot about valuations in emerging markets recently, calling out the region as one of the few undervalued areas of the market. By selectively adding to emerging markets holdings, as Jeff Feng, the team’s Head of Emerging Markets* discussed recently, the team has supported those words with actions. Let’s take a look at how the team’s convictions have played out so far.

Companies, not regions

The term emerging markets is used to describe a vast and extremely diverse group of countries. Jeff and the Trimark Global Equities team invest in companies, not countries, sectors or regions. As quality investors, opportunity matters and economic tailwinds help, but execution is what makes the difference – stock picking.

The table below shows how the Trimark team’s emerging-markets companies have performed compared to the broader emerging-markets index. I present this data to show, with performance numbers, how the Trimark discipline functions in the real world. By taking advantage of available opportunities, and doing company-by-company research, the team is able to outperform the index by a wide margin. Sticking to the discipline works.

If you have any questions about Trimark, our suite of global funds or the team’s emerging-markets investments, please feel free to leave a comment below for myself or the team.

*Jeff Feng is Head of Emerging-Markets Equities at Invesco Hong Kong Limited (IHKL). Invesco Canada has entered into a sub-advisory agreement with IHKL to manage certain Trimark funds.

Represents the time period that the current portfolio management team has been managing the fund.

Trimark Global Fundamental Equity Fund, Series A provided the following performance returns as at October 31, 2015: 1 year, 14.63%; 3 years, 18.44%; 5 years, 12.98%; 10 years, 4.40%.

Trimark Emerging Markets Class, Series A provided the following performance returns as at October 31, 2015: 1 year, 2.74%; 3 years, 10.13%; Since inception (January 2011), 0.03%††.

Trimark International Companies Fund, Series A provided the following performance returns as at October 31, 2015: 1 year, 16.10%; 3 years, 20.01%; 5 years, 11.28%; 10 years, 4.41%.

Trimark Fund, Series A provided the following performance returns as at October 31, 2015: 1 year, 15.98%; 3 years, 17.75%; 5 years, 12.79%; 10 years, 5.50%.

Trimark Global Dividend Class, Series A provided the following performance returns as at October 31, 2015: 1 year, 10.87%; 3 years, 13.38%; 5 years, 11.38%; Since inception (April 2007), 3.25%.

††On April 5, 2013, the Fund’s investment strategies and portfolio advisor were changed. The performance of this Fund for the period prior to this date would have been, and the quartile rankings may have been, different had the current investment strategies and portfolio advisor been in place during that period.

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