Developing Markets

Investment Objective:

To outperform the MSCI Emerging Markets IndexSM over a full market cycle with lower than market volatility.

The Invesco Edge:

  • Experienced portfolio management team supported by well-established International Growth team
  • Bottom-up, active (benchmark agnostic), long-term investment process - ideally suited to adding alpha when investing in the inefficient universe of emerging markets
  • "Quality Growth" with valuation focus: EQV
  • True "all-cap" portfolio well diversified across hugely inefficient emerging market universe
  • Strong and consistent history of outperformance

Investment Strategy:

Our investment process employs a disciplined investment strategy that emphasizes fundamental research, supported by quantitative analysis, portfolio construction and risk management techniques. The "EQV" (Earnings, Quality and Valuation) strategy primarily focuses on identifying and investing in a diversified portfolio of international securities that have experienced, or exhibit the potential for, accelerating or above average earnings growth but whose prices do not fully reflect these attributes.

Research responsibilities within the portfolio management team are focused by geographic region, but investments for the portfolio are selected using a "bottom-up" investment approach. This means that the portfolio is primarily constructed on a stock-by-stock basis focusing on the strengths of individual companies, rather than due to sector, country or regional trends. The portfolio managers may consider selling a security for several reasons, including (1) its fundamentals deteriorate or it posts disappointing earnings, (2) its stock price appears to be overvalued, or (3) a more attractive opportunity is identified.