Objective & Strategy
The fund seeks long-term growth of capital by investing in a diversified portfolio of reasonably priced, quality companies in the Asia Pacific region, excluding Japan, with strong fundamentals and sustainable earnings growth.
Morningstar Rating ™
Overall Rating - Pacific/Asia ex-Japan Stk CategoryAs of 02/28/2023 the Fund had an overall rating of 5 stars out of 48 funds and was rated 5 stars out of 48 funds, 5 stars out of 46 funds and 4 stars out of 32 funds for the 3-, 5- and 10- year periods, respectively.
Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2023 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.
Management team
Top Equity Holdings | View all
% of Total Assets | |
---|---|
Yum China US | 6.21 |
Broadcom | 4.85 |
Swire Properties | 4.14 |
Taiwan Semiconductor | 4.05 |
BDO Unibank | 3.94 |
HDFC Bank ADR | 3.90 |
Wuliangye Yibin 'A' | 3.85 |
Central Pattana | 3.50 |
Tencent | 3.15 |
Bank Central Asia | 2.98 |
May not equal 100% due to rounding.
Holdings are subject to change and are not buy/sell recommendations.
Average Annual Returns (%)
Incept. Date |
Max Load (%) |
Since Incept. (%) |
YTD (%) | 1Y (%) | 3Y (%) | 5Y (%) | 10Y (%) | |
---|---|---|---|---|---|---|---|---|
NAV | 11/03/1997 | N/A | 8.10 | 2.28 | -6.14 | 5.16 | 2.63 | 4.49 |
Load | 11/03/1997 | 5.50 | 7.86 | -3.35 | -11.31 | 3.20 | 1.48 | 3.90 |
NAV | 11/03/1997 | N/A | 8.06 | -10.83 | -10.83 | 1.74 | 2.11 | 4.78 |
Load | 11/03/1997 | 5.50 | 7.81 | -15.73 | -15.73 | -0.16 | 0.96 | 4.19 |
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.
Annualized Benchmark Returns
Index Name | 1 Mo (%) | 3 Mo (%) | 1Y (%) | 3Y (%) | 5Y (%) | 10Y (%) |
---|---|---|---|---|---|---|
MSCI AC Asia Pacific ex Japan Net Return Index (USD) | -6.76 | 0.79 | -11.95 | 2.52 | 0.05 | 3.32 |
MSCI AC Asia Pacific ex Japan Net Return Index (USD) | -6.76 | 0.79 | -11.95 | 2.52 | 0.05 | 3.32 |
MSCI AC Asia Pacific ex Japan Net Return Index (USD) | -0.49 | 12.10 | -17.48 | -0.63 | 0.13 | 3.55 |
MSCI AC Asia Pacific ex Japan Net Return Index (USD) | -0.49 | 12.10 | -17.48 | -0.63 | 0.13 | 3.55 |
Source: RIMES Technologies Corp.
Source: RIMES Technologies Corp.
An investment cannot be made directly in an index.
Expense Ratio per Prospectus
Management Fee | 0.92 |
12b-1 Fee | 0.25 |
Other Expenses | 0.28 |
Interest/Dividend Exp | N/A |
Total Other Expenses | 0.28 |
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) | 0.01 |
Total Annual Fund Operating Expenses | 1.46 |
Contractual Waivers/Reimbursements | -0.01 |
Net Expenses - PER PROSPECTUS | 1.45 |
Additional Waivers/Reimbursements | N/A |
Net Expenses - With Additional Fee Reduction | 1.45 |
Historical Prices
Date | Net Asset Value ($) | Public Offering Price ($) |
---|---|---|
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Distributions
Capital Gains | Reinvestment Price ($) |
|||
---|---|---|---|---|
Ex-Date | Income | Short Term | Long Term | |
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Sector Breakdown
Holdings | % of Total Net Assets |
---|---|
CASH/OTHER | 7.72 |
Communication Services | 4.33 |
Consumer Discretionary | 15.24 |
Consumer Staples | 13.87 |
Financials | 15.56 |
Health Care | 7.00 |
Industrials | 5.70 |
Information Technology | 16.71 |
Real Estate | 13.87 |
May not equal 100% due to rounding.
The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.
Fund Characteristics
3-Year Alpha | 2.61% |
3-Year Beta | 0.87 |
3-Year R-Squared | 0.94 |
3-Year Sharpe Ratio | 0.22 |
3-Year Standard Deviation | 19.55 |
Number of Securities | 41 |
Total Assets | $511,056,821.00 |
Source: RIMES Technologies Corp.,StyleADVISOR
Benchmark: MSCI AC Asia Pacific ex Japan Net Return Index (USD)
Top Equity Holdings | View all
% of Total Assets | |
---|---|
Yum China US | 6.21 |
Broadcom | 4.85 |
Swire Properties | 4.14 |
Taiwan Semiconductor | 4.05 |
BDO Unibank | 3.94 |
HDFC Bank ADR | 3.90 |
Wuliangye Yibin 'A' | 3.85 |
Central Pattana | 3.50 |
Tencent | 3.15 |
Bank Central Asia | 2.98 |
May not equal 100% due to rounding.
Holdings are subject to change and are not buy/sell recommendations.
Top Countries
% of Total Assets | |
---|---|
China | 30.29 |
Indonesia | 12.01 |
Philippines | 7.63 |
Taiwan | 6.80 |
South Korea | 5.04 |
India | 4.98 |
Hong Kong | 4.91 |
United States | 4.85 |
Malaysia | 4.12 |
Thailand | 3.50 |
May not equal 100% due to rounding.
Top Industries
% of Total Assets | |
---|---|
Semiconductors | 13.43 |
Diversified Banks | 13.38 |
Real Estate Operating Companies (Discontinued) | 10.55 |
Restaurants | 6.21 |
Packaged Foods & Meats | 4.67 |
Brewers | 4.30 |
Distillers & Vintners | 3.85 |
Interactive Media & Services | 3.15 |
Hotels, Resorts & Cruise Lines | 2.95 |
Diversified Real Estate Activities (Discontinued) | 2.87 |
May not equal 100% due to rounding.
The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.
Fund Documents
About risk
As with any mutual fund investment, loss of money is a risk of investing. An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. The risks associated with an investment in the Fund can increase during times of significant market volatility. The principal risks of investing in the Fund are:
Market Risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. The value of the Fund’s investments may go up or down due to general market conditions that are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.
Investing in Stocks Risk. The value of the Fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The prices of individual stocks generally do not all move in the same direction at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include, but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks, or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for those types of securities.
Asia Pacific Region Risk (ex-Japan). The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. Certain economies in the region may be adversely affected by increased competition, high inflation rates, undeveloped financial services sectors, currency fluctuations or restrictions, political and social instability and increased economic volatility.
Investments in companies located or operating in Greater China
(normally considered to be the geographical area that includes mainland
China, Hong Kong, Macau and Taiwan) involve risks and considerations not
typically associated with investments in the U.S. and other Western nations,
such as greater government control over the economy; political, legal and
regulatory uncertainty; nationalization, expropriation, or confiscation of
property; difficulty in obtaining information necessary for investigations into
and/or litigation against Chinese companies, as well as in obtaining and/or
enforcing judgments; limited legal remedies for shareholders; alteration or
discontinuation of economic reforms; military conflicts, either internal or
with other countries; inflation, currency fluctuations and fluctuations in
inflation and interest rates that may have negative effects on the economy
and securities markets of Greater China; and Greater China’s dependency
on the economies of other Asian countries, many of which are developing
countries. Events in any one country within Greater China may impact the
other countries in the region or Greater China as a whole. Export growth
continues to be a major driver of China’s rapid economic growth. As a
result, a reduction in spending on Chinese products and services, the
institution of additional tariffs or other trade barriers (or the threat thereof),
including as a result of trade tensions between China and the United States,
or a downturn in any of the economies of China’s key trading partners may
have an adverse impact on the Chinese economy. In addition, actions by the
U.S. government, such as delisting of certain Chinese companies from U.S.
securities exchanges or otherwise restricting their operations in the U.S.,
may negatively impact the value of such securities held by the Fund.
Further, health events, such as the recent coronavirus outbreak, may cause
uncertainty and volatility in the Chinese economy, especially in the
consumer discretionary (leisure, retail, gaming, tourism), industrials, and
commodities sectors. Additionally, the inability of the Public Company
Accounting Oversight Board (“PCAOB”) to inspect audit work papers and
practices of PCAOB-registered accounting firms in China with respect to
their audit work of U.S. reporting companies may impose significant
additional risks associated with investments in China.
Investments in Chinese companies may be made through a special structure known as a variable interest entity (“VIE”) that is designed to provide foreign investors, such as the Fund, with exposure to Chinese companies that operate in certain sectors in which China restricts or prohibits foreign investments. Investments in VIEs may pose additional risks because the investment is made through an intermediary shell company that has entered into service and other contracts with the underlying Chinese operating company in order to provide investors with exposure to the operating company, and therefore does not represent equity ownership in the operating company. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. The contractual arrangements between the shell company and the operating company may not be as effective in providing operational control as direct equity ownership, and a foreign investor’s (such as the Fund’s) rights may be limited, including by actions of the Chinese government which could determine that the underlying contractual arrangements are invalid. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure.
It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent loss, and in turn, adversely affect the Fund’s returns and net asset value.
Certain securities issued by companies located or operating in Greater
China, such as China A-shares, are subject to trading restrictions and
suspensions, quota limitations and sudden changes in those limitations, and
operational, clearing and settlement risks. Additionally, developing countries,
such as those in Greater China, may subject the Fund’s investments to a
number of tax rules, and the application of many of those rules may be
uncertain. Moreover, China has implemented a number of tax reforms in
recent years, and may amend or revise its existing tax laws and/or procedures in the future, possibly with retroactive effect. Changes in
applicable Chinese tax law could reduce the after-tax profits of the Fund,
directly or indirectly, including by reducing the after-tax profits of companies
in China in which the Fund invests. Uncertainties in Chinese tax rules could
result in unexpected tax liabilities for the Fund.
Emerging Market Securities Risk. Emerging markets (also referred to as
developing markets) are generally subject to greater market volatility,
political, social and economic instability, uncertain trading markets and more
governmental limitations on foreign investment than more developed
markets. In addition, companies operating in emerging markets may be
subject to lower trading volume and greater price fluctuations than
companies in more developed markets. Such countries’ economies may be
more dependent on relatively few industries or investors that may be highly
vulnerable to local and global changes. Companies in emerging market
countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than
companies in more developed countries. As a result, information, including
financial information, about such companies may be less available and
reliable, which can impede the Fund’s ability to evaluate such companies.
Securities law and the enforcement of systems of taxation in many
emerging market countries may change quickly and unpredictably, and the
ability to bring and enforce actions (including bankruptcy, confiscatory
taxation, expropriation, nationalization of a company’s assets, restrictions on
foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share
blocking), or to obtain information needed to pursue or enforce such
actions, may be limited. In addition, the ability of foreign entities to
participate in privatization programs of certain developing or emerging
market countries may be limited by local law. Investments in emerging
market securities may be subject to additional transaction costs, delays in
settlement procedures, unexpected market closures, and lack of timely
information.
Foreign Securities Risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent
regulations than U.S. companies, including financial reporting requirements
and auditing and accounting controls, and may therefore be more
susceptible to fraud or corruption. There may be less public information
available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. Unless the Fund has hedged its
foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.
Geographic Focus Risk. The Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative impact on the Fund’s investment performance.
Depositary Receipts Risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer.
Preferred Securities Risk. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Growth Investing Risk. If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time. Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price. Growth stocks may also be more volatile than other securities because of investor speculation.
Small- and Mid-Capitalization Companies Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Sector Focus Risk. The Fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries.
Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Management Risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Invesco EQV Asia Pacific Equity Fund commentary
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