Asia’s fast‑growing economies make up a large share of the world’s population and economic output, yet they remain underrepresented in global markets despite offering strong long‑term potential.
The Invesco Asia Dragon Trust invests in a wide range of companies across Asia and Australasia with the aim of delivering long‑term growth and income.
We believe many Asian companies are priced attractively, and investors may find meaningful opportunities. The Invesco Asia Dragon Trust has the flexibility to invest where the investment team see the best opportunities.
Asian markets are often seen as volatile, meaning their prices can move sharply and unpredictably.
Recent global events, like trade tensions between the U.S. and China, economic challenges in China, and rising U.S. interest rates, have made investors wary of these regions. Many are instead drawn to U.S. investments, which have long dominated the market. However, completely avoiding Asian markets could mean missing certain regional opportunities and the potential for diversification.
Invesco
Why you can’t afford to ignore Asian markets
(Expressed in millions, billions and trillions)
Wealth
Asia already accounts for a fifth of the world’s millionaires
Source: Where to find wealthy consumers in 2024? │ Economist Intelligence Unit
And Asian-Pacific middle classes are expected to hit 3.5 billion people by 2030.
Source: Forecast of global middle class population 2015-2030 │ Statista
That’s a lot of products and services required
Booming digital economy
It’s expected to hit US$1 trillion in Southeast Asia by 2030
Source: How ASEAN is building trust in its digital economy │ World Economic Forum
Expanding cities
More than half of the world’s urban population lives in Asia
Source: Urbanization in Asia and the Pacific Region: Building inclusive & sustainable cities
That number’s expected to grow by 1.2 billion by 2050
Source: Urbanization in Asia and the Pacific Region: Building inclusive & sustainable cities
Asian markets can be volatile and unpredictable…
But avoiding them altogether could mean missing out
Why the Invesco Henley-based Asian and Emerging Markets Team?
We manage more than $37bn globally in Asian andemerging markets*
*Asian and emerging markets equities managed within the Henley team, as at 31 December 2025
We have more than 30 years of experience of investing in Asian and emerging markets
We pride ourselves in seeking to provide long-term capital growth and income
Discover more at www.invesco.com/asia-dragon
Capital at risk
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.
Investments in emerging and developing markets, may result in difficulties in relation to market liquidity, dealing, settlement and custody problems could arise.
Important information
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.
Data as at 31 December February 2025, unless otherwise stated. Views and opinions are based on current market conditions and are subject to change. If investors are unsure if products are suitable for them, they should seek advice from a financial adviser.
Issued by Invesco Fund Managers Limited and Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.
EMEA 5184071/2025
Asia and emerging market countries account for more than half of the world’s population, contributing to half of global economic output. Considering this, in our opinion, the investment opportunity in Asia may be too big and diverse to ignore.
Although U.S. stocks dominate the global market, they don’t represent the full picture of growth opportunities. Asian countries such as China and India account for about half of global economic growth. However, global stock market indices (benchmarks which many funds follow by keeping similar country weights, sector weights, or risk levels) tend to underrepresent these countries, giving them a smaller weighting in global indices, even though these economies are growing quickly. So their share in global indices ends up being much smaller than their share of global economic growth.
In our view, the valuations of companies (the perceived value of a business based on its financial performance, assets, and future earning potential) in Asia are generally lower, making them affordable for investors and potentially providing better returns over time.
The MSCI AC Asia ex Japan Index, which includes companies from China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand, currently trades at a discount. This means the companies in this index are, on average, priced lower relative to their fundamentals—that is, factors such as earnings (profits), revenues (sales), balance sheet strength, cash flow, and growth prospects—than comparable companies in other markets. By contrast, the MSCI World Index, which represents companies across 23 developed markets, trades at higher valuations.
While each market is different, regions like India and Vietnam have high growth potential due to young populations, increasing urbanisation, and strong demand for products and services.
While growth potential in Asian markets is significant, investors should be aware of the associated risks. For example, sudden changes in government policy or trade relationships can affect market performance. Individual countries within the region may also have their own unique risks and economic challenges which can impact returns. Diversifying investments and maintaining a long term perspective can help mitigate some of these risks, although it does not eliminate them.
Our Asia Dragon Trust invests in diversified portfolio of Asian and Australasian companies, with the objective of delivering long-term capital growth and income. The Trust does not follow a benchmark meaning the manager has flexibility to invest in any country, sector, or asset that fits their views, and react to changing market conditions.
By combining fundamental analysis - a method of evaluating a company or asset by examining the underlying factors that drive its value such as financial statements, business performance, industry conditions, and broader economic trends - we hope to identify undervalued Asian franchises. Our team’s ability to form different views on the market and patiently allow their investment strategies to play out has been key to meeting the Trust’s long-term objectives.
For information on risks see the ‘Investment risks’ section below.
At the core of our investment philosophy is the belief that a share price will reflect a company's true value over the long run. In the short-term markets are driven by human emotion and often behave irrationally. We aim to capitalise on gaps that emerge between price and value. Put simply, we aim to buy when there is fear in the market, when we have a high degree of conviction that a stock is trading at a significant discount to what we consider to be fair value. We then look to sell when the share price recovers and avoid holding onto stocks when prices reflect greed.
To promote accountability, everyone within the Asian and emerging markets team manages their own portfolio, with analysts running a model portfolio (a sample or practice portfolio that an analyst manages to show how their investment ideas might work in real life).
The Invesco Asia Dragon Trust plc aims to provide long-term capital growth and income by investing in a diversified portfolio of Asian and Australasian companies.
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