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