Invesco Asia Trust (LON:IAT) aims to provide attractive long-term capital growth through investing in a diversified portfolio of Asian and Australasian equities. With few investment constraints, the relatively concentrated portfolio of 50-60 stocks is a reflection of the manager’s highest conviction ideas, driven primarily by bottom-up considerations. IAT has a solid long-term track record and its NAV total return has outperformed the benchmark over three, five and 10 years. Asian equities have performed strongly over the past two years, leaving valuations above the historic average. However, they remain at a meaningful discount to global equities, and the manager continues to find attractive long-term investment ideas.
Investment strategy: High conviction, fundamental
IAT has a fundamental approach in seeking quality companies with strong balance sheets, cash flows and management, which are trading at a significant discount to estimated fair value on a three- to five-year investment horizon. A team of six UK-based Asian equity specialists facilitate IAT’s bottom-up process, which involves meeting around 700 companies a year, and conducting in-depth analysis to help build a diversified portfolio of around 50-60 highest conviction stocks. Top-down analysis helps to guide country and sector weights.
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