| Fund Company | Invesco Canada |
| Fund Type | Global Equity |
| Rating | $$$ |
| Style | Value |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Excellent |
| TFSA Suitability | Excellent |
| Manager | Michael Hatcher since April 2011 Jeff Feng since April 2011 Darren McKiernan since April 2011 |
| MER | 1.66% – SC Units 2.86% – A Units |
| Code | AIM 1513 – Front End Units AIM 1511 – DSC Units |
| Minimum Investment | $500 |
Analysis: This is an update to our last review which can be found at https://paterson-associates.com/2012/03/trimark-fund-2/
On April 17, we had the opportunity to meet with Michael Hatcher, Jeff Feng and Darren McKiernan, the new management team of the Trimark Fund. They have worked together for the past nine years, first at Burgundy Asset Management and now at Invesco.
The new team emphasized that there will be no change to the underlying investment discipline that is used to manage the fund. The fund will continue to be a concentrated portfolio of high quality, well managed businesses that have competitive advantages and the ability to generate strong levels of free cash flow.
However, the implementation of that discipline has changed. There has been significant turnover in the weeks since the new team took over. They inherited a portfolio of 38 names. Since their arrival, they have sold 25 of those names and bought 28 new names.
Another change will be how portfolio weights within the portfolio are set. Under Dana Love’s tenure, individual positions would be allowed to make up a significant portion of the fund. It was not uncommon to see a portfolio weight of 8% or higher. Under the new management team, it is expected that the portfolio will be much more evenly distributed among all of the holdings. Michael Hatcher said that he is good at picking the 40 names he likes, but much less confident on picking which of those names will be the best performer over a short term period.
The new team will still focus on discounted free cash flow as the main determent of intrinsic value. Their sell discipline remains the same. A stock will be sold if the investment thesis changes, a better investment idea is found, or the stock becomes fully valued.
We are encouraged by what we have seen and heard from this team. However, we remain cautious. There has been significant turnover within the fund and we will need to see a few quarters of data under the broader mandate of the Trimark Fund before we can make a more definitive call on the fund.
That said, we will be maintaining our $$$ rating on the fund