| Fund Company | Invesco Canada Ltd. |
| Fund Type | Canadian Equity |
| Rating | B |
| Style | Blend |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Fair |
| TFSA Suitability | Fair |
| Manager | Ian Hardacre since October 2001 Alan Minnik since December 2010 Jason Whiting since April 2012 |
| MER | 2.50% |
| Code | AIM 4313 – Front End Units AIM 4315 – Low Load Units AIM 4311 – DSC Units |
| Minimum Investment | $500 |
Analysis: Like most Trimark branded funds, this Canadian equity offering is managed using a disciplined, bottom up, fundamentally driven, stock selection process. The managers look for companies that have a defendable competitive advantage, opportunities for long term growth, strong management. It also must be trading at a discount to what they believe is its true value.
They tend to take a longer term view, and as a result, portfolio turnover tends to be relatively modest. However, portfolio turnover was sharply higher for the year ending March 2013, which is likely the result of Jason Whiting stepping in to take over from Richard Nield and Jason Holzer. It certainly looks as though turnover has returned to more normalized levels this year.
Since the manager change, the fund has moved to more of an all-cap fund, where previously it was focused more on the large cap space. The average company size is about half the average of the index and category.
The portfolio is concentrated, holding about 30 names, and the top ten making up 43% of the fund. Surprisingly, it is littered with a number of familiar names including TD Bank, Brookfield Asset Management, Power Corp, and the Bank of Nova Scotia. On a sector basis, it is dramatically different from the index, with no exposure to consumer defensive, utilities or communications, and virtually no exposure to materials. It is overweight in technology, industrials, and real estate. It currently holds about 10% of the fund in cash.
Performance looks to have turned the corner. For the year ending November 30, it has gained nearly 31%, more than doubling the 13% rise in the S&P/TSX Composite Index. Volatility has been roughly in line with the index, but I would expect that it has the potential to move higher, with more exposure to small and mid-caps.
On balance, I like this fund. My only concern is that it appears to be a much different fund than it was a couple of years ago. While Jason Whiting has a good track record on the other funds he is managing, I would still like to see another couple of quarters on this mandate before I recommend it. But, if you currently own it, it’s a keeper.