Invesco Asia Trust - 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.