Invesco Global Emerging Markets Fund (UK) Z (Acc)

Emerging Markets

Rated Fund 2015-19. Looks for cheap companies in growth markets

Invesco Global Emerging Markets had been managed by Dean Newman, Invesco’s former head of emerging market equities, since 2007. Ian Hargreaves and William Lam took over his leadership responsibilities when Newman retired at the end of 2018 after 25 years with Invesco. Hargreaves and Lam now jointly lead a combined Asian and emerging market equities team from Henley-on-Thames, and are co-managers of this fund.

Stock selection remains the key focus of the investment strategy. The managers aim to invest in companies that they believe are well run and have a market position that should allow them to deliver a high level of return on invested capital.

The investment approach also places a strong emphasis on valuation, which they regard as a key determinant of future returns. Even if the fundamentals of a company are strong they will not buy the stock if it is overvalued. Emerging markets can be volatile, but as long-term investors the managers like to take advantage of temporary bouts of equity weakness as they provide them with more attractive buying opportunities. The fund has historically tended to do well in periods when markets have been weaker.

At the end of 2018, the largest geographical weightings were South Korea at 16%, China at 14% and Taiwan at 10%.

Although 2019 promises to be a challenging environment, they think that emerging economies are better placed to withstand the pressures than before. They point to solid economic and corporate fundamentals, evidence of strong balance sheets and improving free cash-flow generation.

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
Invesco Global Emerging Markets Fund (UK) 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
4
3 Year Sharpe
0.89
3 Year Alpha
-0.65
Yield
1.1 %
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 %
Samsung Electronics Co Ltd Participating Preferred 6.33 %
Taiwan Semiconductor Manufacturing Co Ltd 4.74 %
Naspers Ltd Class N 4.59 %
ICICI Bank Ltd ADR 3.12 %
Alibaba Group Holding Ltd ADR 2.99 %
Sberbank of Russia PJSC ADR 2.88 %
MediaTek Inc 2.86 %
Tencent Holdings Ltd 2.67 %
HDFC Bank Ltd ADR 2.53 %
Baidu Inc ADR 2.30 %
Region %
Asia - Emerging 35.91 %
Asia - Developed 29.78 %
Latin America 13.07 %
Europe - Emerging 6.76 %
Africa 5.80 %
United Kingdom 5.37 %
Sector %
Technology 32.36 %
Financial Services 29.45 %
Basic materials 10.51 %
Consumer Cyclical 9.52 %
Consumer Defensive 5.21 %
Name
Invesco Fund Managers Limited
Address
RG9 1HH,, Oxfordshire, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Ian Hargreaves
Joined 09/28/2018

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.

William Lam
Joined 09/28/2018

William is a portfolio manager at Invesco Perpetual based at Henley-on-Thames, U.K. He has been with the company since May, 2006. He joined Deloitte as a chartered accountant in 1998, but always had a view to entering the fund management industry. He moved over to money management in 2001, when he joined Orbis Investment Advisory as an investment analyst. He joined Invesco in May 2006 as a portfolio manager. William has an MA in Psychology and Philosophy from Oxford University and an MSc. in Music Technology from York University. He holds the CFA designation and is also a chartered accountant.

Data provided by Morningstar.

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