Invesco Canada Blends Global and Local03.19.2015
Invesco Canada, a unit of independent global investment management firm Invesco, aims to offer global depth and breadth with a local touch.
With investment management its only business, “Invesco’s independence and sole focus on investment management is key to working with clients in a consultative manner and delivering high-quality products that aim to produce superior investment performance, while offering quality administration and high-quality client service,” Joe Di Massimo, senior vice president of institutional investments at Invesco Canada, told Markets Media.
The firm’s investment capabilities are both diverse and specialized. Being diversified across geography, styles and asset classes ensures investors have a comprehensive investment choice.
“Our distinctive combination of independent thought within individual investment centers – and collaboration across them – provides clients the reach and resources of a global organization with the focus and attention of a boutique firm,” said Di Massimo. “We deliver consistent, high-quality service through professional local support, access, proactivity and responsiveness.”
A primary investment theme in Canadian markets is global diversification. “Canadian institutional investors are currently seeking to reduce their exposure to Canadian equities, shifting funds into global and emerging markets assets,” said Di Massimo. “There is also increased interest in global small-cap equities.”
Many investors are also seeking to reduce their exposure to Canadian real estate in favor of global real estate.
The housing market remains the main area of concern in the domestic economy, Invesco chief economist John Greenwood said in a report. Continued low mortgage interest rates have tempted households to take on more housing debt, raising the household debt-to disposable income ratio to 159.1% in the third quarter, one of the highest levels in the world. Moreover, as much as 35% of new mortgage loans are non-prime.
“Understandably, the BoC has pinpointed the high level of household debt and the imbalances in the housing markets as two key areas of vulnerability for the Canadian economy,” said Greenwood.
The most important favorable external factor for Canada has been the steadily strengthening recovery of the U.S. private sector, enabling Canadian exports of cars, trucks, auto parts and intermediate food products to start to gain traction, and domestic activity levels to rise, according to Greenwood.
Even so, business spending on investment has remained subdued, with most of Canada’s growth still coming from household consumption spending. Counterbalancing these gains, the sharp declines in commodity prices, especially in energy prices, will adversely affect Canadian incomes and act as a drag on consumer and business spending in the western provinces.
With more than 750 investment professionals in 20 locations around the world, Invesco Ltd. has clients in 150 countries. The firm “delivers the combined power of our distinctive investment management capabilities,” Di Massimo said. “As a global company, we have access to a deep pool of investment resources. Our organization offers a variety of investment styles, but the common theme is to seek outperformance over traditional cap-weighted benchmark indices.”
For institutional clients, Invesco offers a full suite of investment vehicles, including institutional pools, separately managed accounts, private placements and mutual funds. “Invesco can provide customized portfolios to meet the specific requirements and obligations of our clients by including specific investment restrictions within separately managed accounts,” said Di Massimo. “We can further tailor a portfolio using portable alpha, strategic partnerships and socially responsible investing.”
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