
“We are optimistic about the prospective returns for emerging market equities.”
Charles Bond, Fund manager
An active fund of around 50 companies across emerging markets. Derived from bottom-up analysis with a tight focus on valuation and a contrarian mindset at the point of purchase.
Why this fund?Emerging markets can 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.
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 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.
Access the Invesco Global Emerging Markets Fund (UK) product page to view KIDs/KIIDs and factsheets.
The team has been successfully investing in Asian and emerging market equities for over 20 years. Today, the team’s equity strategies have a combined AuM of ~ EUR 15 billion.
“We are optimistic about the prospective returns for emerging market equities.”
Charles Bond, Fund manager
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.
In emerging market and developing economies, growth is expected to slow down to 3.7 percent in 2025 and 3.9 percent in 2026, with significant downgrades for countries affected most by recent trade measures, such as China. Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3 percent in 2025 and 3.6 percent in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025.1
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.
Explore key macroeconomic themes and sector trends shaping global equities in 2025, as discussed by experienced fund managers in our recent webinar hosted by Ben Gutteridge.
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Our Henley-based Asian & EM Equities Team discuss the opportunities of emerging markets and why a shift in perspective is required.
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