Like other Trimark-branded equity funds, the managers like to view
investing more as taking an ownership in a business rather than trading
stocks. They tend to focus more on the intrinsic value of a company than
its share price, leading to lower levels of portfolio turnover. The result
is a high-conviction portfolio of quality companies with strong management,
free cash flow generation, excellent organic growth, and sustainable
Investing in non-U.S. based companies, the managers look to buy good
companies trading at a discount to intrinsic value. However, looking at the
portfolio valuation metrics, you will see it is not cheap, trading at
multiples that are slightly above the market. A reason for this disconnect
is that management is willing to pay a higher price for what they believe
are high-quality businesses that can deliver over the long-term. They will
not sacrifice quality for a cheap price.
As of May 31, top holdings included South Korean technology giant Samsung Electronics Co. Ltd., preferred shares, Chinese
consumer staples company Kweichow Moutai Co. Ltd., Belgian
global brewer Anheuser-Busch InBev SA/NV, Chinese
information technology firm Alibaba Group Holding Ltd. ADR
, and French business support services company Bureau Veritas S.A.
This approach has paid off handsomely. To the end of May, the fund has
delivered a first-quartile average annual compounded rate of return of
18.35% for the past five years, outpacing its peers by a generous margin.
The outperformance for the past year is also impressive, gaining 20.53%,
besting its peers by over 200 basis points.
My biggest concern with this fund is its cost, with an MER of just under
Given the investment process, I don’t expect the absolute level of
outperformance to be sustainable over the long-term, but I do believe it
can deliver above-average returns with average or better volatility over
the long term. I see this as a solid pick for those looking for non-North
American equity exposure.
Trimark International Companies Fund
Invesco Canada Ltd.
FundGrade™ Rating: A
Fundata FundGrade A+ Award: 2014, 2015, 2016
Large Cap GARP
Jeff Feng since October 2009; Matt Peden since 2013
AIM1733 (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.
Notes and Disclaimer
© 2017 by Fund Library. All rights reserved. Reproduction in whole or in
part by any means without prior written permission is prohibited.
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.