An active fund of around 60 companies across Asia ex Japan derived from bottom-up analysis with a tight focus on valuation and a contrarian mindset at the point of purchase.
Asia remains the fastest-growing region in the world. By 2050, it could account for half of global economic output¹ and be home to the world’s largest middle class. This represents a large opportunity set for active investors like us.
Valuation anomalies naturally emerge in areas of excessive pessimism. That’s why we often look for new ideas in unloved areas of the market.
We don’t chase the market to find new opportunities. As active investors with a contrarian approach, we buy and build positions in temporarily unloved stocks trading well below our estimate of fair value. We target a double-digit annualised return from each stock we buy2, as we ride the transition from contrarian to popular.
We believe that the most sustainable way to make money for clients is to buy companies for less than they are worth. Our valuation-led approach incorporates rigorous fundamental analysis, meaning we can identify the likely sources of mispricing and how our views differ from consensus.
We believe that share prices reflect fundamentals over time. Markets tend to overact to current events and underappreciate a company’s long-term prospects. By taking a long-term approach to investing, we’re able to capitalize on the market’s short-termism. Access the Invesco Asian Equity Fund product page to view KIDs/KIIDs and factsheets.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
For complete information on risks, refer to the legal documents. The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the fund. The fund may invest in certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the fund.
William Lam, fund managerVolatility provides opportunity, uncertainty leads to mispricing.
The team has been successfully investing in Asian and emerging market equities for over 20 years. Today, the team’s Asian equity strategies have a combined AuM of > EUR 9 billion.
Asia is the world’s growth engine. Demographic shifts and digitalisation will only serve to reinforce this view. With a growing middle class and increased connectivity, the region is now home to a vast pool of digital consumers, who are keen to adopt new products and technologies. Asian companies willing to innovate to meet the rising needs of domestic consumers are thriving in this environment.
For those with a long-term investment horizon, the case for investing in Asia is as strong as ever. Favourable structural trends are driving growth in the region, creating plenty of investment opportunities – and not just within China. However, investors need to be aware that there are big valuation discrepancies between and within markets and sectors. Adopting a rigorous approach to investing will remain key to investment success.
You can invest in the Asian and emerging market stock markets by investing in actively managed mutual funds or exchange traded funds (ETFs). Invesco offers a broad range of actively managed funds and ETFs.
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1 Source: Asian Development Bank
2 Please note there is no guarantee this performance target will be achieved.
Data as at 31.12.2022, unless otherwise stated. This is marketing material and not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Any investment decision should take into account all the characteristics of the fund as described in the legal documents.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For more information on our funds and the relevant risks, please refer to the share class-specific Key Information Documents / Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements. This is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial advice. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This communication is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction.
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