Introducing the Invesco Asian Fund (UK)

Introducing the Invesco Asian Fund (UK)

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.

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Capturing opportunities in Asia

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.

Most dynamic region

If Asia continues to follow its recent trajectory, by 2050 its per capita income could rise sixfold in purchasing power parity (PPP) terms.2

Diversification opportunities

Asian countries vary widely in economic structure and development experiences, providing ample investment and diversification opportunities.

Valuation-led investing

Valuation anomalies naturally emerge in areas of excessive pessimism. That’s why we often look for new ideas in unloved areas of the market.

Why this fund?

We are contrarian investors, aiming to buy companies for significantly less than our estimate of ‘fair value’. We favour conservative balance sheets and invest with a 3–5-year time horizon.

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 buy, 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 Fund (UK) product page to view KIIDs and factsheets.
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Meet the team

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 11 billion.3

Volatility provides opportunity, uncertainty leads to mispricing.

FAQs

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. 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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  • Footnotes

    1 Source: Asian Development Bank, Asia 2050, Realizing the Asian Century, https://www.adb.org/sites/default/files/publication/28608/asia2050-executive-summary.pdf.

    2 Source: Asian Development Bank, Asia 2050, Realizing the Asian Century, https://www.adb.org/sites/default/files/publication/28608/asia2050-executive-summary.pdf.

    3 Data as at 31/12/2023.

    Investment risks

    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. The fund invests in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise. The fund may use Stock Connect to access China A Shares traded in mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk. The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.

    Important information

    Data is as at 30/04/2024 and sourced from Invesco unless otherwise stated. This is marketing material and not financial advice. It is 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. Views and opinions are based on current market conditions and are subject to change. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the financial reports and the Prospectus, which are available using the contact details shown.

    EMEA3575411/2024