Invesco Asia Trust
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
|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 %|
|Asia - Emerging||52.34 %|
|Asia - Developed||39.56 %|
|Financial Services||31.46 %|
|Consumer Cyclical||9.11 %|
|Basic materials||6.06 %|
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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