An active fund of around 60 companies across Asia ex Japan derived from bottom-up analysis with a tight focus on valuation and a contrarian mindset at the point of purchase.
See all product detailsAsia remains the fastest-growing region in the world. By 2050, it could account for half of global economic output¹ and be home to the world’s largest middle class. This represents a large opportunity set for active investors like us.
If Asia continues to follow its recent trajectory, by 2050 its per capita income could rise sixfold in purchasing power parity (PPP) terms.2
Asian countries vary widely in economic structure and development experiences, providing ample investment and diversification opportunities.
Valuation anomalies naturally emerge in areas of excessive pessimism. That’s why we often look for new ideas in unloved areas of the market.
We are contrarian investors, aiming to buy companies for significantly less than our estimate of ‘fair value’. We favour conservative balance sheets and invest with a 3–5-year time horizon.
We don’t chase the market to find new opportunities. As active investors with a contrarian approach, we buy and build positions in temporarily unloved stocks trading well below our estimate of fair value. We target a double-digit annualised return from each stock we buy, as we ride the transition from contrarian to popular.
We believe that the most sustainable way to make money for clients is to buy companies for less than they are worth. Our valuation-led approach incorporates rigorous fundamental analysis, meaning we can identify the likely sources of mispricing and how our views differ from consensus.
We believe that share prices reflect fundamentals over time. Markets tend to overact to current events and underappreciate a company’s long-term prospects. By taking a long-term approach to investing, we’re able to capitalize on the market’s short-termism.
For complete information on risks, refer to the legal documents. 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 team has been successfully investing in Asian and emerging market equities for over 20 years. Today, the team’s Asian equity strategies have a combined AuM of > EUR 12 billion.
Volatility provides opportunity, uncertainty leads to mispricing.
Asia is the world’s growth engine. Demographic shifts and digitalisation will only serve to reinforce this view. With a growing middle class and increased connectivity, the region is now home to a vast pool of digital consumers, who are keen to adopt new products and technologies. Asian companies willing to innovate to meet the rising needs of domestic consumers are thriving in this environment.
For those with a long-term investment horizon, the case for investing in Asia is as strong as ever. Favourable structural trends are driving growth in the region, creating plenty of investment opportunities. However, investors need to be aware that there are big valuation discrepancies between and within markets and sectors. Adopting a rigorous approach to investing will remain key to investment success.
You can invest in the Asian and emerging market stock markets by investing in actively managed mutual funds or exchange traded funds (ETFs). Invesco offers a broad range of actively managed funds and ETFs.
1 Source: Asian Development Bank, Asia 2050, Realizing the Asian Century, https://www.adb.org/sites/default/files/publication/28608/asia2050-executive-summary.pdf
2 Source: Asian Development Bank, Asia 2050, Realizing the Asian Century, https://www.adb.org/sites/default/files/publication/28608/asia2050-executive-summary.pdf
Data as at 31.03.2024, unless otherwise stated. By accepting this material, you consent to communicate with us in English, unless you inform us otherwise. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell 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. Views and opinions are based on current market conditions and are subject to change. For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German, Spanish, Italian), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements. 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.
EMEA3584595/2024
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