Invesco Emerging Markets ex-China Equity Strategy

An actively managed strategy of around 45 companies across emerging markets (EM) for investors who prefer greater exposure to smaller EM equity markets with no direct China specific risk.

See all strategy details

There’s more to emerging markets than China

Many investors now have dedicated equity exposure to China. A growing number of them have expressed a desire to treat China separately when allocating to emerging market equities. This isn’t out of the ordinary: large individual markets are often removed from regional equities as they grow. By investing in an emerging market ex China strategy, investors can achieve greater country and sector diversification, while reducing the specific political, regulatory and geostrategic risks associated with investing in China.

Gain greater exposure to smaller emerging markets

Reduce or exclude China-specific risks

Benefit from active, valuation-led investing

Why this strategy?

Beyond the shadow of China lies a diverse opportunity set: each country comes with its own idiosyncrasies and inefficiencies, providing fertile ground for active stock pickers like us.

We seek to buy companies for less than they are worth and spend most of our time evaluating their ‘fair value’. 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 tend to initiate positions in stocks temporarily out of favour, which increases the potential rewards without relying on undue optimism. We target a double-digit annualised return from each stock we buy, as we ride the transition from contrarian to popular.

We favour net cash balance sheets as a form of insurance, should the investment case not play out as anticipated.

Investment risks

  • 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.

Meet the team

The team has been successfully investing in Asian and emerging market equities for over 20 years. James McDermottroe and Charles Bond manage the strategy’s stock selection. They have a combined investment experience of more than 25 years.

Emerging market equities offer a substantial opportunity set for active investors – with or without China.

Important Information

  • This marketing communication is exclusively for use by Professional Clients in Dubai. It is not intended for and should not be distributed to the public.

    Data as at 30.11.2024, unless otherwise stated.

    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.

    Further information on our products is available using the contact details shown.
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