Invesco shutters fund to new investors

Toronto-based Invesco Canada Ltd. is closing Trimark Canadian Small Companies Fund to new investors, effective Oct. 8. The fund’s closure is intended to protect the interests of existing unitholders, who may continue to invest in the fund. With assets under management of about $700 million, the fund invests mainly in common shares of a diversified group of small-capitalization Canadian companies. The fund’s portfolio-management team concentrates its efforts on finding high-quality companies with a sustainable competitive advantage and strong growth prospects. “We’ve recently had significant asset growth in the fund,” says Jason Whiting, lead portfolio manager, “due to inflows and increases in the value of the fund’s investments. The limited size of the Canadian small-cap market makes it difficult to deploy large amounts of capital in a timely fashion. We’ve decided to close the fund to new investors in order to maintain the integrity of its investment strategy.” A primary reason for the fund’s success is its concentrated portfolio of 25 to 40 businesses that represent the portfolio managers’ best investment ideas. A significantly more diversified portfolio potentially would dilute the value added by the portfolio-management team.

(cohara@investmentexecutive.com).