An actively managed fund that’s not constrained by a benchmark. We find opportunities in unloved areas of the market and our portfolio consists of approximately 50 of our best ideas.
See all product detailsEmerging markets offer investors a world of untapped potential. Home to the vast majority of the world’s population, they’ve outpaced developed markets in terms of economic growth for years. And yet, they remain significantly underrepresented in many equity portfolios.
Emerging markets have undergone a significant transformation, having emerged as hubs for innovation, entrepreneurship, and growth.
Emerging market countries vary widely in economic structure and development experiences, providing ample investment and diversification opportunities.
We seek to capitalise on market inefficiencies through fundamental analysis to determine a stock’s real value.
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.
As active investors we have a contrarian approach. We don’t take the consensus view, rather we focus on temporarily unloved areas of the market to look for new ideas. Markets often overact to short-term news and place undue influence on current trends. We seek to exploit these market inefficiencies.
Buying when valuations are lower leads to better subsequent returns for investors. We buy undervalued stocks that are trading well below their fair value. We use fundamental analysis focusing on balance sheet health, profitability, cash flow dynamics and accounting quality to gain an idea of a company’s fair value and future earnings growth.
We believe equity markets tend to reward those who can take a long-term view. We target a double-digit annualised return from each stock we buy to beat the market and think share prices will reflect fundamentals over time1.
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.2
We are optimistic about the prospective returns for emerging market equities.
Historically, a growing middle class has been a strong indicator of a country’s future economic growth. As the middle class in emerging market countries expands, companies are expected to benefit from growing consumer purchasing power and shifts in spending patterns. Moreover, emerging markets are trading at a significant discount relative to developed markets and world markets, buoyed by strong fundamentals and a number of economies that are at an early stage in their cycle.
Emerging markets’ growth is expected to remain steady in 2024. Emerging economies’ manufacturing and services Purchasing Managers Index surveys, which focus on current and near-term economic expectations, mostly point to economic expansion. Expectations across most emerging markets are that inflation will be trending lower steadily, which should bode well for consumption and company earnings.3
You can invest in 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 Invesco. For illustrative purposes only. There is no guarantee this target will be achieved.
² Source: Invesco as at 31/03/2024
³ IMF World Economic Outlook April 2024 https://www.imf.org/en/Publications/WEO/Issues/2024/04/16/world-economic-outlook-april-2024
Data as at 31.05.2024, 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.
EMEA3621957/2024
Let us know using this form and one of our specialist team will quickly get back to you.
