London, UK, 15 December 2023

Edison issues update on Invesco Asia Trust (IAT): Ready to exploit valuation dislocations in Asia

Invesco Asia Trust’s (IAT’s) one-year NAV total return (TR) of negative 3.7% (vs negative 3.5% for the benchmark) was limited by the measured Chinese re-opening rebound, as the trust moved to an overweight position in China and Hong Kong earlier this year (now at c 43% of portfolio, c 3–4pp above benchmark weight). That said, the managers uphold their conviction in IAT’s Chinese stock picks, and the trust maintained its long-term outperformance of the benchmark and its AIC Asia Pacific Equity Income peer group. IAT still has a cyclical bias, favouring themes such as technology (including semiconductors), consumer and internet, the automotive sector (including growing EV penetration), as well as sustained credit growth and demand for insurance products in Asia.

IAT’s unconstrained, bottom-up strategy of looking for mispriced, quality businesses with strong balance sheets, which should outperform over the next three to five years, looks well-suited for the current environment. Its approach is validated by IAT’s strong long-term track record in terms of risk-adjusted returns and the extensive experience of IAT’s investment manager (including IAT’s lead manager, Ian Hargreaves). Moreover, its balanced approach to growth and income means that IAT is not restricted to stocks that are pure dividend plays. Investors may also appreciate IAT’s active approach to ESG integration, as it not only looks for top ESG performers but also companies that are well-placed to improve their ESG credentials. IAT’s shares trade at a c 13% discount to its NAV including income, which is slightly wider than the five and 10-year average of c 11%.

 
Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn www.linkedin.com/company/edison-group-/

Twitter  www.twitter.com/Edison_Inv_Res

YouTube www.youtube.com/edisonitv