Factsheet: IP Global Emerging Markets Z Acc

Emerging Markets

Rated Fund 2015-2018. Looks for cheap companies in growth markets

This fund has been managed by Dean Newman, Invesco Perpetual's head of emerging market equities based in Henley-on-Thames, since 2007. Stock selection is the key focus of his investment strategy. He aims to invest in companies that he believes are well-run and have a market position that should allow them to deliver a high level of return on invested capital.

His investment approach also places a strong emphasis on valuation, which he regards as a key determinant of future returns. Even if the fundamentals of a company are strong he will not buy the stock if it is overvalued. Emerging markets can be volatile, but as a long-term investor Newman likes to take advantage of temporary bouts of equity weakness as they provide him with more attractive buying opportunities. The fund has historically tended to do well in periods when markets have been weaker. At the end of 2017, his largest geographical weightings were to South Korea and China, at around 15 per cent each, and Taiwan at 11 per cent. However, his largest overweight is to the Europe, Middle East and Africa region.

Going into 2018, he is positive on the outlook for emerging markets on the basis that they are still trading at a significant discount to developed ones, despite their strong run during 2017. Companies are also increasingly delivering on expectations of double-digit earnings growth.He recognises, however, that companies in emerging markets are not immune to a global growth shock.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
IP Global Emerging Markets Z Acc
Manager
Invesco Fund Managers Limited
Type
Open Ended Investment Company
ISIN
GB00B8N46731
Sector
Global Emerging Markets
Launched
12/11/2012
OCF
1 %
Risk Rating
3
3 Year Sharpe
0.84
3 Year Alpha
3.48
Yield
1.2 %
Benchmark
MSCI EM NR USD
The fund aims to achieve capital growth primarily through a portfolio of shares in companies established and/or operating in countries where, in the opinion of the Manager, there is an emerging market. Exposure to such markets will partially be obtained through indirect investment in securities traded on other markets. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions.
Holding %
Naspers Ltd Class N 6.21 %
Samsung Electronics Co Ltd Participating Preferred 5.95 %
Alibaba Group Holding Ltd ADR 5.09 %
Taiwan Semiconductor Manufacturing Co Ltd 4.46 %
Sberbank of Russia PJSC ADR 2.87 %
KB Financial Group Inc 2.36 %
Housing Development Finance Corp Ltd 2.16 %
NetEase Inc ADR 2.13 %
Baidu Inc ADR 2.06 %
NOVATEK PJSC GDR 1.85 %
Region %
Asia - Developed 29.13 %
Asia - Emerging 27.76 %
Latin America 14.60 %
Europe - Emerging 9.68 %
Africa 9.00 %
Sector %
Technology 31.38 %
Financial Services 25.78 %
Consumer Cyclical 13.27 %
Consumer Defensive 7.84 %
Basic materials 7.49 %
Energy 5.46 %
Name
Invesco Fund Managers Limited
Address
RG9 1HH,, Oxfordshire, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Dean Newman
Joined 03/01/2007

Dean joined INVESCO in 1993 as a member of its Emerging Markets team. Dean has been a driving force behind the group’s emerging markets investment strategy with many years experience of Latin American and EMEA ex Eastern Europe equity markets. He began his investment career in 1985 joining Legal and General where he covered the UK equities markets, moving to a Japanese bank, Sanwa, in 1991 where he was Head of UK Equities.

Data provided by Morningstar.

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