Fund Focus: Invesco Global Endeavour Fund

FundGrade A+® Award winner

Managed by the Invesco team of Jeff Hyrich and Erin Greenfield, Invesco Global Endevour Fund is a concentrated, all-cap offering that has been one of my favourites for some time. It was formerly called Trimark Global Endeavour Fund, but back in July Invesco rebranded its Trimark and PowerShares funds under the Invesco name. Management and fund objectives remaining the same for the most part. The managers of this fund aim for a concentrated portfolio of between 25 and 40 companies of any size that are typically leaders in their industry.

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 equities.

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
Fund company: Invesco Canada Ltd.
Fund type: Global Equity
FundGrade: B (September)
FundGrade A+® Awards: 2012, 2015, 2016
Style: Mid Cap Blend
Risk level: Medium
Load status: Optional
RRSP/RRIF suitability: Excellent
Manager: Jeff Hyrich since Aug. 2002; Erin Greenfield since Jan. 2008
MER: 2.58%
Fund code: AIM1593 (Front-end load)
Minimum investment: $500

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 of 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.

Notes and Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. No guarantee of performance is made or implied. This article is for information purposes only and is not intended as personalized investment advice.