The managers focus on what they determine to be attractively valued
companies with strong management teams that have a proven history of
generating strong free cash flows, sustainable competitive advantages, and
solid long-term growth prospects.
The process is very much bottom up with the sector mix and geographic
exposure being the result of the stock selection process. At the end of
August, roughly 45% the portfolio was in U.S. equities, with the balance
spread across Europe and Asia. It had a 2.5% weighting to Canadian
As for sector exposure, the portfolio is tilted towards financial services
and consumer discretionary names, with underweighting in industrials.
Both long- and short-term performance has been solid. For the 12 months
ending Sept. 30, the fund gained 10%, and its 5-year average annual
compounded rate of return came in at nearly 12%.
Volatility has been roughly in line with the broader market, but the
managers have done a reasonable job protecting capital in down markets. For
the past three and five years, the fund has participated in about 88% of
the market’s drawdowns.
Top holdings currently include
Ross Stores Inc. (NASDAQ: ROST),
Anthem Inc. (NYSE: ANTM),
Microsoft Corp. (NASDAQ: MSFT),
S&P Global Inc. (NYSE: SPGI), and McMillan Shakespeare Ltd. (ASX: MMS).
Overall market valuations remain rich, but the managers have still been
able to find a few quality opportunities. That pool is expected to deepen
somewhat with the return of market volatility and more traditional trading
patterns. They remain patient and will stick to their disciplined
investment process, being careful not to overpay for growth.
All in all, this remains an excellent all-cap global offering.
Invesco Global Endevour Fund
Invesco Canada Ltd.
FundGrade A+® Awards:
2012, 2015, 2016
Mid Cap Blend
Jeff Hyrich since Aug. 2002; Erin Greenfield since Jan. 2008
AIM1593 (Front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
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only and is not intended as personalized investment advice.