Management and benchmark change for Invesco Asia

Invesco Asia outperformed its benchmark by some margin over the six months that finished on 31 October 2014. The net asset value total return was 17.6% and the return to shareholders 16.6% – these compare favourably to a 10.3% return on the benchmark (MSCI All Countries Asia Pacific ex Japan Index (total return), expressed in sterling).

The Board wants investors to recognise, with effect from 1  January 2015, that Ian Hargreaves (pictured) is now the principal portfolio manager for Invesco Asia, as Stuart Parks has taken more of a support role, Stuart remains as head of Invesco’s Asia team.

The Board is also looking to change the company’s benchmark to the MSCI Asia ex Japan Index – effectively taking Australasia out of the benchmark, in recognition of the persistently low waiting the fund has had to that part of the index.

The Board has also set a working range for the company’s gearing. The Manager has the freedom to borrow within a working range set by the Board within the overall limit of the Company’s investment policy which permits gearing up to 25% of net assets. In practice, although borrowings have typically been in the range of 5-10% of net assets, the Board has currently set a working range which permits the Manager to use gearing up to 15% of net assets. As at 31 October 2014, gearing amounted
to 2.2% of net assets.

The manager’s statement says strong performance has been driven by good stock selection in a number of sectors, particularly IT, materials and industrials. The two biggest contributors to performance were Baidu, the search engine operator,  and online gaming company,  NetEase.

IAT : Management and benchmark change for Invesco Asia

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