fund
Invesco Asian Equity Income (UK) Y
Targets a yield 20% above that of the benchmark, together with capital growth.
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309.76p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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402.85p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.99%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.99%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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2.60%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The Fund aims to generate a rising level of income (120% of the benchmark) together with long-term capital growth by investing primarily in shares of companies in Asia and Australasia (excluding Japan). The managers main investment principle is to judge stocks on their ability to generate capital returns, meaning the income requirement is at the fund level. The investment approach is flexible and the managers combine top down macro outlook with bottom up stock analysis.
Fund summary
| Sector | Asia Pacific Excluding Japan |
| Structure | OEIC |
| Launched | March, 2014 |
| Size | £45m |
| Yield | 2.60% |
| Charging basis | Capital |
| Dividends paid | 31 Jan, 31 Jul |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.99% |
| Ongoing charges figure | 0.99% |
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Investment process
The fund aims to generate a rising level of income (120% of the benchmark index) together with long-term capital growth by investing primarily in shares of companies in Asia and Australasia (excluding Japan). The managers' main investment principle is to judge stocks on their ability to generate capital returns, as such, some stocks in the portfolio will have a low yield, meaning the income requirement is at the fund level. The investment approach is flexible and the managers combine top down (macro economics) with bottom up stock analysis. Therefore the first step is to analyse opportunities at a country and sector level, which gives guidance as to what areas to focus on at the stock level. Stock selection focuses on the earnings growth rate implied by valuations, earnings transparency and cash flow.
Many Asian companies are now capable of generating steady, sustainable streams of dividends for investors. Invesco Perpetual's experienced Asian desk aim to exploit this trend by targeting a yield 20% above that on the benchmark. The managers follow a flexible approach that allows them to invest not only in higher yielding stocks but also lower yielding stocks with above average capital return potential. As such, the income requirement is at the fund level, meaning the portfolio is managed on a total return basis.
Manager research
Average monthly relative returns
- 16/17 0.09%
- 17/18 -0.76%
- 18/19 0.38%
- 19/20 -0.65%
- 20/21 0.44%
Bestinvest MRI
- 3 years 0.06%
- 5 years -0.10%
- Career 0.00%
- 3 years 69.20%
- 5 years 46.00%
- Career 80.00%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Stuart Parks / Tim Dickson
Parks graduated with an MA in History from Oxford University in 1983 and began his investment career with Wood MacKenzie in 1985, then moved to London Life, Swiss Bank Portfolio Management International and GAN Fund Managers. In January 1994 he joined Perpetual (now Invesco Perpetual) where he became Co-Head of Asian Retail Investment. In January 2005 he became sole head of Asian Equities. Dickson joined Invesco Perpetual's Asian equities team in 2009. He previously worked at SWIP from June 2005 as an investment director in the Global Emerging Markets team, with the responsibility of managing a range of institutional Asian portfolios as well as researching the industrials and basic materials sectors. Before joining SWIP, he worked for F&C Asset Management for six years. He was part of the Asia-Pacific equity team. Prior to that, he worked at the Bank of England from 1993 to 1997. Dickson holds an MSc (Distinction) in Economics from Birkbeck College and a BSc in Economics from the City University of London. He is a CFA Charterholder.
Track record
Stuart Parks / Tim Dickson has 10 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -00%. During the worst period of relative performance (from May 2014 - March 2020) there was a decline of 15% relative to the index. The worst absolute loss has been 23%.
Periods of worst performance
| Absolute | -23.00% (July 2019 - March 2020) |
| Relative | -15.00% (May 2014 - March 2020) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 8.22% | Taiwan Semiconductor Co |
| 6.02% | Samsung Electronics Co |
| 5.74% | Alibaba Group Hldg Ltd |
| 3.56% | Tencent Hldgs Ltd |
| 3.38% | Mediatek Inc |
| 3.08% | Delta Electronics Inc |
| 3.04% | Mahindra & Mahindra |
| 2.93% | Jiangsu Yanghe Brewery Js Co Ltd |
| 2.79% | Aia Group Ltd |
| 2.41% | Woodside Petroleum |
| Source: Trustnet |
Sector breakdown
| Information Technology | 28.00% |
| Financials | 18.00% |
| Consumer Discretionary | 16.00% |
| Communications | 12.00% |
| Consumer Staples | 6.00% |
| Industrials | 5.00% |
| Energy | 5.00% |
| Materials | 4.00% |
| Real Estate | 3.00% |
| Utilities | 2.00% |
Portfolio
c70 stocks.
Constraints
Some country limits: max 2x, min 0.5x index exposure, although Australia does not have this restriction.