Invesco Global Focus

Invesco Global Focus is a high conviction, concentrated fund, which invests in structural growth winners. The philosophy behind the portfolio, which contains around 35 stocks, is to buy companies which are winning and then let them compound over time. Those with entrenched competitive advantages and attractive valuations are preferred.

Our opinion

The manager’s approach is refreshingly simple: understand the structural trends which are changing the world and then invest in the best companies which are benefitting from these trends. Randy combines this simple philosophy with detailed fundamental research and management meetings on individual stocks. He has a very high conviction both in his process and his portfolio. We like Randy’s wider range of life experiences, as well as his experience as a fund manager. Invesco Global Focus is stylistic and has a heavy growth bias and may be vulnerable to short term swings in market momentum. Randy has only been running this version of fund for a short time but has already got off to a blistering start.

Fund manager

Randall Dishmon has a wide range of experiences. He holds a B.S. in engineering from North Carolina State University, an M.S in engineering from the John Hopkins University and an MBA from the University of Michigan. He spent 7 years as a vice president with KCI technologies. He also spent two years as a management consultant. Randy was at Oppenheimer for over 20 years before it was recently acquired by Invesco.

Investment process

Randy has a no nonsense philosophy and investment process. His wide range of experiences working with different companies as an engineer and as a management consultant gives him an advantage when getting to the heart of what drives a business.

The strategy is simple but effective: identify a long term persistent trend, such as cloud computing, and find the best businesses in that area.

There are monumental shifts happening in the real world providing tremendous opportunities and risk. It is critical to invest on the right side of these trends. Current trends the fund considers are the rise of e-commerce, digital payments, cloud computing, network security software, life sciences tools, mobile technologies, social media and digital customer service.

Randy believes only three questions are worth asking which drives his fundamental research: Is this business ever worth owning? At what price? And is management working for shareholders?

Randy invests in companies for the long term and looks to benefit as growth compounds over time. A typical investment time horizon is 3-5 years. Randy and the team typically meet with the management of each company held in the portfolio once a year.

ESG

ESG - Integrated  

Randy’s straightforward approach with this fund incorporates ESG issues from a philosophical point of view. His approach is to understand firms with enduring products or services, that are benefitting from long-term structural trends, with defendable positions. Holistically, this is likely to lead to those with sustainable practices, that treat stakeholders of the business fairly and have a responsible approach with regards to environmental practices. Firms that don’t have this are unlikely to match Randy’s concept of structural winners. To supplement his own work, Randy has access to Invesco’s in-house tool, ESGIntel. This tool takes inputs from throughout the scope of a business’ operations, including raw material sourcing, treatment of suppliers, and their own internal policies. This fund has a particular focus on the governance element. Randy is looking for managers who have alignment with minority shareholders, have strong capital discipline and who think with a long-term outlook - just like Randy does when he assesses a potential holding.

Risk

The fund is highly concentrated but carefully constructed to ensure good diversification across themes and sectors. It invests in structural winners and avoids cyclical stocks which are typically more vulnerable to a market sell off. Randy buys profitable companies, tries to make sure he doesn’t pay too much and that he is investing with the right people. The portfolio is then carefully balanced for risk and reward with higher weightings going to the best ideas.

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