A well-rounded fund with a cautious approach to growth

Invesco International Growth boasts consistent long-term outperformance.

Jeffrey Bunce, CFA 21 December, 2017 | 6:00PM
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Invesco International Growth's style can sometimes work against it, but its consistent approach -- focusing on the earnings growth of high-quality businesses trading at reasonable valuations -- has delivered attractive returns over the long term. Add to the mix a stable and experienced management team and the fund has the necessary pieces to outperform, according to research performed by Morningstar Investment Management LLC.

The Invesco growth team uses the catchphrase EQV -- for earnings, quality and valuation -- to describe its investment process. At its core is a search for sustainable earnings growth, that doesn't rely too much on leverage (debt), at a price that is within an acceptable range. Although the managers use quantitative screens to eliminate stocks that don't meet their standards, the selection process relies heavily on fundamental analysis of companies and managements.

The fund's managers and analysts are divided into two teams -- one covering Asia and Latin America and one for Europe and Canada -- and are further divided between large and small caps. The managers and analysts are very experienced; lead manager Clas Olsson has been on the team since 1994 and running it since 1999. All seven of the portfolio managers listed on this fund have greater than US$1 million invested in Invesco U.S.-domiciled funds, demonstrating an impressive level of alignment with investors.

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About Author

Jeffrey Bunce, CFA

Jeffrey Bunce, CFA  Jeffrey Bunce, CFA, is a senior investment analyst for Morningstar’s Investment Management group.

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