Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Invesco Asia. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
IAT could appeal to investors looking to diversify in a growth-heavy sector…
Overview

Invesco Asia Trust (IAT) is managed with a flexible, valuation sensitive approach which has proven invaluable during the macroeconomic volatility of the past two years. Manager Ian Hargreaves uses valuation signals to enter and exit positions rather than trying to anticipate trends in sentiment or the economy, and this has led to a successful series of trades into and out of rallying stocks and sectors in 2020 and 2021, in turn leading to two consecutive years of outperformance in very different environments. As we discuss under the Performance section, this has contributed to a good long-term track record of outperforming the benchmark.

Ian characterizes his style as a ‘growth at a reasonable price’ strategy. In recent years, many of his most successful stock picks have been in growth areas such as technology and ecommerce, where he was able to find opportunities to invest in under-appreciated companies that stood to benefit from strong structural trends. Typically the portfolio is balanced across sectors and countries, with a current tilt towards value, given this is where Ian has found valuations to be more attractive, after the recent sell-off in growth stocks, but he is finding ideas in various countries and sectors (see the Portfolio section).

IAT pays a dividend of 2% of NAV each half year, with contributions made from capital and the portfolio managed for total return.

In January 2022, Fiona Yang was appointed co-manager alongside Ian. Fiona is a native mandarin speaker who has been working on the portfolio for about four years and contributing to greater coverage of onshore China stocks, in particular.

IAT’s Discount has been trending narrower over the past two years; at the time of writing it is 9% compared to an 11% five-year average.

Analyst's View

The last two years have really shown off the advantages of Ian’s valuation-driven approach. Market direction and leadership has rapidly changed, based on non-economic factors such as vaccines and variants which would have been impossible to reliably anticipate. By following the valuation discipline closely, Ian had trimmed his exposure to ecommerce and China before the reflationary rally was underway and rotated into more cyclical areas. More recently he has been building back exposure to China after its sell-off, aided by Fiona’s input. We think this valuation-sensitive approach is likely to appeal to many investors in the current environment, as they look to diversify their exposure to the dominant growth stocks and funds which have done so well in recent years.

IAT should appeal to those seeking growth or income, thanks to the enhanced dividend policy which sees it pay an annualised yield of 4%. Crucially, Ian is able to invest without worrying about covering this dividend with natural income, allowing him to buy exciting companies with no or low dividends, such as Ming Yan Smart Energy, a wind turbine manufacturer and current key overweight with a de minimis yield. Investors do give up some certainty over future distributions, given the dividend level depends on the growth or decline in NAV.

Bull

  • Dividend policy offers attractive yield while maintaining total return focus
  • Flexible approach with more valuation-sensitivity than a growth dominated peer group
  • Strong long-term track record

Bear

  • Dividend is not predictable as it depends on NAV
  • Asia as a whole does not look cheap
  • Rising US interest rates could be a headwind to emerging Asia
Continue to Portfolio

Fund History

09 Mar 2022 Fund Analysis
IAT could appeal to investors looking to diversify in a growth-heavy sector…
16 Feb 2022 Investing in Asia with investment trusts
How closed-ended funds can help investors get exposure to Asian companies…
03 Feb 2022 Video update: Invesco Asia
Update from new co-manager Fiona Yang...
06 Oct 2021 Slides and Audio: Invesco Asia
Download the presentation and listen to the audio from our 'Now that's what I call a discount!' Autumn conference on 30 September...
23 Sep 2021 Now that's what I call a discount 2021!
For the second year running we examine trusts on discounts which, in our view, don't make sense...
25 Aug 2021 Is the UK’s debt a ticking time bomb?
Our analyst argues Rishi is right to worry about government debt and borrowing…
09 Aug 2021 Fund Analysis
IAT has enjoyed a strong period of outperformance, boosted by a diverse group of companies…
09 Mar 2021 Asian opportunities in challenging times
Ian Hargreaves, manager of Invesco Asia Trust plc, believes the strength of the Asian equity markets are on the up since their March 2020 lows...
21 Jan 2021 Fund Analysis
IAT has significantly outperformed in Ian Hargreaves’ first five years as sole manager…
24 Sep 2020 Fund Analysis
IAT’s new dividend policy will see it pay 4% of NAV as a dividend each year…
06 Aug 2020 Ian Hargreaves
Ian Hargreaves is co-head of the Asian & Emerging Markets Equity Team at Invesco in Henley on Thames and runs a number of pan-Asian portfolios including Invesco Asia Trust (IAT), Invesco Asian Equity Fund and the Invesco Global Emerging Markets Fund (UK)...
28 May 2020 Opportunities from the Covid-19 crisis
Ian Hargreaves of Invesco outlines key questions to be considered through this 'black swan' event...
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
22 Jan 2020 Fund Analysis
IAT’s cheap portfolio is positioned for a strong 2020 in Asian markets…
06 Nov 2019 Poacher turned gamekeeper
Former fund manager - now investment trust chairman - Neil Rogan discusses how his own lessons from the job have helped him in his role...
21 Aug 2019 All change: a closer look at the AIC's revised sectors
We examine the AIC's revised sector classifications and discuss whether further improvements could be made...
03 Jul 2019 Push-me pull-you
Two contrasting influences are dominating the outlook for Asian markets - we analyse them and how Asia trusts are positioning their portfolios in response...
02 Jul 2019 Fund Analysis
Invesco Asia offers a diversified portfolio that has outperformed in a variety of market conditions...
10 Jul 2018 Outlook for Asia: still positive?
Invesco's Ian Hargreaves gives his take on the trade war and more...
19 Apr 2018 Fund Analysis
This concentrated portfolio of Asian equities has a strong track record, yet it continues to trade at a significant discount...
19 Apr 2018 What now for Asia?
We examine battered Asian equities amid talk of a trade war between the US and China...
30 Nov 2017 Race ready?
We analyse the outlook for emerging markets and, in particular, the genuine active funds that focus on them…
29 Nov 2017 Fund Analysis
An unconstrained strategy focused on Asian equities with a bias towards smaller companies...
02 Jun 2017 Finely balanced...
We take a closer look at the Asia Pacific ex Japan sector following a period of improved inflows into the open-ended sector and the recent outperformance of Asian equities...
View all

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.