Invesco Asia Trust

Asia Equities

Rated Fund 2014, 2018-19. Considers macroeconomic indicators

This trust was highly commended in the Best Asia Pacific Trust category of Money Observer’s 2017 investment trust awards, and it has since continued to benefit from its stable management and disciplined approach.

Ian Hargreaves has been sole manager of this trust since January 2015, having previously been co-manager alongside Stuart Parks. He has been based in the UK since 2005 but previously spent 10 years as an analyst at Invesco’s Hong Kong office.

Hargreaves looks to invest in companies whose share prices are substantially below his estimate of their fair value, particular those with competitive advantages and balance sheet strength.

While bottom-up analysis is the main focus and is expected to be the largest contributor to performance, he differs from his sector peers in using a topdown macroeconomic overlay to guide his decisions.

Some 16% of the portfolio is invested in India, which he believes has the best reform momentum in the region and is the only economy in the trough of its credit cycle, which suggests there are fewer constraints to structural growth compared with other economies. The fund also has 17% exposure to South Korea, where he believes corporate governance improvements are being ignored by the market.

At a sector level, he has significant exposure to dominant, highly cash-generative Korean and Taiwanese technology companies, as well as selected Chinese internet firms. A tilt towards financials has increased over the past year, reflecting what Hargreaves considers to be improved fundamentals at selected banks and insurers.

Shares in the trust typically traded at a discount of 10-15% during 2018. Investors who time their entry carefully could get more bang for their buck.

Narrative and ratings content all as of January 2019.  

See all Money Observer rated funds
Name
Invesco Asia Trust
Manager
Invesco Fund Managers Limited
Type
Closed Ended Investment Company
ISIN
GB0004535307
Sector
Asia Pacific - Excluding Japan
Launched
11/07/1995
OCF
1 %
Risk Rating
4
3 Year Sharpe
1.21
3 Year Alpha
1.49
Yield
2.7 %
Benchmark
MSCI AC Asia Ex Japan GR USD
Fund Size
£ 201.54 million
NAV
313
Gearing
100
Discount Premium
-8
The objective is to provide long-term capital growth by investing in a diversified portfolio of Asian and Australasian companies. The Company aims to achieve growth in its NAV in excess of the Benchmark Index, the MSCI AC Asia ex Japan Index (total return, in sterling terms).
Holding %
HDFC Bank Ltd 4.18 %
Tencent Holdings Ltd 3.88 %
Taiwan Semiconductor Manufacturing Co Ltd 3.82 %
Samsung Electronics Co Ltd 3.45 %
Industrial And Commercial Bank Of China Ltd H 3.35 %
Baidu Inc ADR 3.07 %
AIA Group Ltd 3.05 %
Aurobindo Pharma Ltd 2.89 %
ICICI Bank Ltd 2.83 %
MediaTek Inc 2.79 %
Region %
Asia - Emerging 52.34 %
Asia - Developed 39.56 %
Sector %
Financial Services 31.46 %
Technology 30.06 %
Consumer Cyclical 9.11 %
Industrials 6.34 %
Basic materials 6.06 %
Name
Invesco Fund Managers Limited
Address
RG9 1HH,, Oxfordshire, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Ian Hargreaves
Joined 03/01/2011

Mr. Hargreaves, Fund Manager — Asian Equities, joined Invesco in 1994 and has been on the IAML team since 2005. He manages pan-Asian portfolios, and is specifically responsible for covering the Hong Kong/China markets as well as markets in South East Asia, namely, Singapore, Malaysia, Thailand and Indonesia.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.