| Fund Company | Invesco Canada Ltd. |
| Fund Type | U.S. Equity |
| Rating | C |
| Style | Growth at a Reasonable Price |
| Risk Level | Medium |
| Load Status | Optional |
| Manager | Jim Young since October 1999 Ashley Misquitta since February 2012 |
| MER | 2.98% |
| Code | AIM 1743 – Front End Units AIM 1741 – DSC Units |
| Minimum Investment | $500 |
Analysis: Typically, when one thinks of the traditional Trimark investing discipline, what often comes to mind is a process that is more value focused, looking to buy high quality businesses that are trading below their estimate of it’s true worth. With this fund, it uses the same basic methodology, except through more of a growth lens, which may help explain why the fund holds nearly 25% in technology.
Manager Jim Young has built a concentrated portfolio of U.S. based businesses that have strong management, distinct proprietary advantages, and a history of generating long term cash flows. But where this fund appears to differ from other Trimark funds is the manager pays particular attention to companies that have a proven ability to profit from technological advances, and who have invested significantly to obtain their competitive advantages.
The portfolio is fairly concentrated, holding approximately 45 names, with the top ten making up 37% of the fund. In addition to its overweight position in technology, it is also heavily weighted towards consumer discretionary and healthcare stocks. Not surprisingly, it is underweight in both energy and materials. The fund is nearly fully invested, holding less than 1% in cash.
The manager’s process is fairly patient, with a level of portfolio turnover which has averaged around 50% per year. This indicates that the implied holding period for each stock in the fund is approximately two years.
Performance for the fund has been decent, gaining 8.2% annually for the past five years. Despite lagging the index, it finished in the top quartile, handily outpacing its peer group. The volatility is roughly in line with the broader market.
The fund is not cheap, with an MER of 2.98%. This is well above the category median of 2.45%.
The manager remains positive on U.S. equities and believes that they are better positioned to withstand any macroeconomic headwinds than many other countries. They are also quite positive on the potential manufacturing renaissance that could occur in the U.S. as a result of previously inaccessible natural gas deposits as a cheap form of energy.
It is our opinion that this fund may be a good core U.S. equity holding for investors who have at least a medium risk tolerance and a long term time horizon.