Invesco Asia Trust (LON:IAT) seeks capital appreciation from a portfolio of Asia Pacific ex-Japan stocks, diversified by sector and geography. Despite investor concerns about slowing growth in the region, and China in particular, the manager is finding attractive investment opportunities. IAT’s NAV has outperformed its benchmark over the short, medium and long term. In absolute terms, over 10 years both the NAV and share price have returned more than 10% pa. IAT has a 1.9% dividend yield, which compares favourably with its close peers.
Investment strategy: Seeking value opportunities
Manager Ian Hargreaves, assisted by the rest of the Asia Pacific team at Invesco Perpetual, seeks to invest in a relatively concentrated portfolio of c 60 stocks combining top-down views with bottom-up fundamental analysis. Meeting company management teams is viewed as an important element of the investment process and there is a large focus on company valuation. The manager is unconstrained by the benchmark and around a third of the portfolio is in small-cap stocks, which are often under-researched and may offer better value than the broader market.
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