Invesco Asia Trust plc – Update from new co-manager Fiona Yang
2 Mar, 2022
Fiona Yang, recently appointed to co-manager of Invesco Asia Trust plc (IAT), sits down with one of IAT’s non-executive directors, Vanessa Donegan, to discuss the promotion and her thoughts for the year ahead.
In this update they look at
Fiona’s outlook for the region in 2022
The investment trust’s contrarian approach
The role of India in the portfolio
Managing the portfolio through Covid-19
AT’s dividend policy
What Fiona is looking forward to in her role as co-manager of the investment trust
Glossary of terms
Undemanding valuation
Valuation is the analytical process of determining the current worth of a company or a portfolio. Undemanding valuation means the current market value of an asset is worth less than what it could be worth
Tightening to easing
Also known as monetary policy tightening and easing. A tightening policy happens when central banks sell assets to reduce the money supply in the economy. An easing policy is the opposite and occurs when central banks buy assets with an aim to increase money supply in the economy.
Price-to-earnings ratio
The price-to-earnings ratio (P/E ratio) of an index is a measurement intended to show an index’s current price compared to the index’ earnings. The price-to-earnings ratio (P/E ratio) of a company is a measurement intended to show a company’s current share price compared to the company’s earnings per share. It is often used to measure a company’s value.
Price-to-book ratio
The price-to-book ratio (P/B ratio) is a measurement intended to show an index’s current market value compared to its book value. The price-to-book ratio (P/B ratio) is a measurement intended to show a company’s current market value compared to its book value per share.
Reserve requirement ratio
The reserve ratio, also known as reserve requirement, is the portion or percentage of a bank’s deposits that they must hold onto and keep in reserve. The reserve ratio can be an important monetary policy tool that a central bank can use to increase or decrease money supply in the economy.
Prime rate
The prime rate is the interest rate that banks charge their customers with the highest credit ratings.
Credit penetration
Buying on credit refers to the practice of permitting a buyer to receive goods or services before payment. Credit penetration of a particular country can be measured by the proportion of credit in relation to GDP, the population segments that are served by the banks and also the usage of various bank instruments or products.
Structural growth
It refers to a dramatic shift in a country or a region to enable sustained long term growth. Structural growth is typically driven by powerful forces such as disruptive technologies or changing demographics and consumer behaviour.
Capex upcycle
Capex upcycle refers to an upward trend in the capital expenditure (capex) of a specific country.
Risk warnings
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.
When making an investment in an investment trust/company you are buying shares in a company that is listed on a stock exchange. The price of the shares will be determined by supply and demand. Consequently, the share price of an investment trust/company may be higher or lower than the underlying net asset value of the investments in its portfolio and there can be no certainty that there will be liquidity in the shares.
The Invesco Asia Trust plc invests in emerging and developing markets, where difficulties in relation to market liquidity, dealing, settlement and custody problems could arise.
The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV.
The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.
As a result of COVID-19, markets have seen a noticeable increase in volatility as well as, in some cases, lower liquidity levels; this may continue and may increase these risks in the future. In addition, some companies are suspending, lowering or postponing their dividend payments, which may affect the income received by the product during this period and in the future.
For more information on Invesco’s range of Investment Trusts please see here.
Important Information
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports.
Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.
If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser. For details of your nearest financial adviser, please contact IFA Promotion at www.unbiased.co.uk.
Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.
