A bull market in emerging market equities
This page should be read in conjunction with the investment risks below.
Looking for attractive investment opportunities in emerging markets?
We believe the opportunities for investors are likely to be plentiful in emerging markets. Europe faces numerous headwinds, while valuations in the US market currently seem, in our view, to ignore the challenges ahead.
However, valuations across emerging markets have become inordinately cheap and we are excited to uncover well-run companies even in the most stressed economies.
Learn more about the Invesco Developing Markets Equity Fund
Why Emerging Markets Equities?
Weakness in the US dollar
Emerging markets currencies are competitively priced and historically emerging markets stock markets have tended to perform better against a backdrop of a weakening US dollar.
The right cocktail
An environment of low interest rates and a weakening US dollar are likely to boost foreign capital flows and private investments towards non-US assets. That bodes well for emerging markets, which we think offer greater potential for growth as (non-China) emerging countries by and large are constrained by insufficient domestic savings to fund investments necessary to lift structural growth.
China
China now accounts for more than 40% of the MSCI Emerging Markets index. With more unicorns (privately held innovative start-ups valued at more than US$1 billion) going public, we believe that China’s share will continue to grow in size and importance.
Improving accessibility
With the massive changes in accessibility of Chinese companies (and relatively pedestrian real estate prices), we anticipate a significant shift in asset allocation towards equities, analogous to what we witnessed in the US in the 1980-90s when mutual funds democratised equity investing. And remember China has the largest savings pool in the world.
Seeking to outperform through active portfolio management
The team employs a bottom-up approach that seeks to identify exceptional companies that benefit from structural growth tailwinds, have sustainable competitive advantages and real options that manifest over time. For professional investors only.
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Key advantages
$43bn in assets:
The largest actively managed emerging markets equity strategy available.
Experience:
13 years capability track record & 27 years of investment industry experience.
Benchmark agnostic:
70% difference in top 10 holdings between fund and its benchmark.
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to our insights to find out if our Invesco Developing Markets Equity Fund could be right for your portfolio.
Investment Risks
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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. As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the fund. The fund may invest in certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the fund. The fund invests in a limited number of holdings and is less diversified. This may result in large fluctuations in the value of the fund.
Important Information
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This marketing material contains information that is for discussion purposes only and is exclusively for investors in Switzerland.
Data as at 10/31/2020, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in 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. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction.
For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. These documents are available from our website www.invesco.eu and are without charge.
Issued by Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland, who acts as representative for the funds distributed in Switzerland. Paying agent for the funds distributed in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich.
The fund is domiciled in Luxembourg.EMEA 197/2021