Invesco Asia Trust

Asia Equities

Rated Fund 2014, 2018. Considers macroeconomic indicators

This trust was highly commended in the Best Asia Pacific Trust category of Money Observer's 2017 investment trust awards, so we are adding it to our Rated Funds roll call for 2018 in place of Pacific Assets investment trust. Invesco Asia is similarly conservative, but boasts better performance and a higher discount of more than 10 per cent at the end of 2017 � meaning those buying the trust get more bang for their buck.

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 before that spent 10 years as an analyst in Invesco's Hong Kong office.

Hargreaves looks to invest in companies whose share prices are substantially below his estimate of fair value, particular those with competitive advantages and balance sheet strength. He differs from his sector peers in using a top-down macroeconomic overlay to guide his decisions. As a result the trust has an overweight position representing 20 per cent of the trust's net asset value in South Korea, where he believes improved corporate governance is being overlooked by investors, and 15 per cent in India.

He believes that macro indicators of revenue growth in Asia are peaking and performance will be more modest in the next few years, following two years of strong returns. He has been reducing allocation to information technology, as he believes the sector is approaching peak earnings and looks fully valued. Conversely, he believes there are opportunities to be found in financials, an area he has historically avoided.

Narrative and ratings content all as of 01 January 2018.

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
5
3 Year Sharpe
0.93
3 Year Alpha
0.42
Yield
1.4 %
Benchmark
MSCI AC Asia Ex Japan GR USD
Fund Size
£ 197.14 million
NAV
314
Gearing
97
Discount Premium
-12
To provide long-term capital growth by investing in a diversified portfolio of Asian and Australasian companies, while aiming to achieve growth in its net asset value in excess of the MSCI All Country Asia ex-Japan Index, measured in sterling terms. The company invests primarily in the equity securities of companies listed in the stock markets of China, Hong Kong, India, Malaysia, Singapore, South Korea, Taiwan and Thailand. It may also invest in unquoted securities to a maximum amount of 10% of the value of the company‘s Gross Assets and in warrants and options when it is considered the most economical means of achieving exposure to an asset.
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.