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Invesco Perpetual Asian Equity Income Fund

March 2017 (Content as at 28 February 2017)

Overview

Objective

The Invesco Perpetual Asian Equity Income Fund aims to generate a rising level of income together with long term capital growth by investing primarily in shares of companies in Asia and Australasia (excluding Japan). In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus.

Fixed interest roundtable Q&A: where next for bond markets?

Video

15 July 2015

Invesco Perpetual Fixed Interest team

In this live roundtable with fund managers from our Fixed Interest team, they discussed key issues including whether the Greek debt crisis matters for bond markets and the current macroeconomic backdrop.

Market commentary

Asian equity markets recorded decent gains in February, largely due to better than expected economic data. Fears also subsided that US trade policy will take a strongly protectionist turn under President Trump, benefiting North Asian equity markets (e.g. Taiwan and South Korea) and currencies in particular. Chinese equities made good gains, reflecting robust economic data, positive earnings revisions and fewer concerns surrounding capital outflows. Chinese regulators moved to reduce financial risks, while the central bank maintained its tightening bias. India’s equity market outperformed the broader region, supported by a fiscally prudent Union Budget, and receding concerns that demonetisation would lead to a meaningful economic slowdown, with stronger than expected 4Q GDP growth of 7.0% year-on-year. Meanwhile, the Reserve Bank of India signalled an end to the monetary policy easing cycle. Finally, the Philippines’ equity market and currency weakened amidst mixed corporate earnings results, and investor concerns of rising inflation and domestic political uncertainty.

Fund strategy

We seek to invest in companies whose share prices are substantially below our estimate of fair value and, in our view, have an ability to grow or maintain their dividend payments. The fund continues to have significant exposure to the IT sector through dominant Taiwanese and South Korean companies as well as a leading online game developer in China. We also remain focused on heavily cash-backed businesses with what we view as strong free cash flow and potential dividend growth. As such, we recently introduced a holding in Caltex, Australia’s leading oil refining and marketing company. While Caltex has been out of favour recently due to lower refining margins and the loss of a bid for Woolworth’s fuels business, we believe the company remains well managed with an attractive earnings growth outlook. Elsewhere, we took some profits from auto-parts manufacturer Minth, and added to existing holdings in Hutchison Telecom and Industrial & Commercial Bank of China.

Key facts
Product type ICVC
Launch date 07 March 2011
Fund size £38.9m
Historic yield 3.17%
Sector IA Asia Pacific Excluding Japan NR
Available in an ISA? Yes

Fund manager

Tim Dickson

Title: Fund Manager
Team: Invesco Perpetual - Asian Equities
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 31 May
30 November
Share types
SEDOL ISIN
Accumulation B4PQ817 GB00B4PQ8174
Income B4KPCF1 GB00B4KPCF10
Accumulation (No Trail) B4JR4R4 GB00B4JR4R48
Income (No Trail) B4KN501 GB00B4KN5012
Y (Acc) BJ04DX8 GB00BJ04DX80
Y (Inc) BJ04DY9 GB00BJ04DY97
Z (Acc) B8N44S0 GB00B8N44S01
Z (Inc) B8N44T1 GB00B8N44T18
Investment levels
Minimum lump sum £500

Performance

Charges

One-off charges taken before you invest

Entry charge

The entry charge for the fund is up to 5%. This is the maximum that might be taken out of your money before it is invested. For example, if you invest £1,000, an entry charge of 5% means £950 of your money will be used to buy shares in the fund.

The entry charge covers the costs of setting up your investment.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. For more details see "What share classes are available for your ICVC funds?".

Exit charge

There is no exit charge for the fund.

Charges taken from the fund over a year

Ongoing charge

The ongoing charge figure is based on a fixed, all-inclusive fee and excludes portfolio transaction costs. The ongoing charge for each share class can be found in the relevant Key Investor Information Document available under 'Literature'. Investors will be provided with advance notice if any increases to this figure occur.

The ongoing charge covers all aspects of operating the fund during the year, including fees paid for investment management, administration and the independent oversight functions.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. Once invested, your contract note or acknowledgement letter will show the amount of any payment in cash terms. For more details see "What share classes are available for your ICVC funds?".

Charges taken from the fund under specific conditions

Performance fee

No performance fee is charged.

Portfolio transaction costs1

On average, over the last three financial years, the fund incurred broker commissions of 0.08% and transfer taxes of 0.04%, as a necessary part of buying and selling the fund's underlying investments in order to achieve the investment objective. A proportion of these costs is recovered directly from investors joining and leaving the fund.

When the fund buys or sells shares, broker commissions and transfer taxes are paid by the fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments and derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment. The estimated average dealing spread for the fund is 0.30% of the transaction value.

Comparing portfolio transaction costs for a range of funds may give a false impression of the relative costs of investing in them, for the following reasons:

  • Transaction costs do not necessarily reduce returns. The net impact of dealing is the combination of the effectiveness of the manager's investment decisions in improving returns and the associate costs of investment
  • Historic transaction costs are not an effective indicator of the future impact on performance
  • Transaction costs for buying and selling investments due to other investors joining or leaving the fund may be recovered from those investors. For further information see Pricing policy note below
  • Transaction costs vary from country to country
  • Transaction costs vary depending on the types of investment in which a fund invests
  • As the manager's investment decisions are not predictable, transaction costs are also not predictable

Pricing policy note1

We operate a single pricing methodology for this fund and reserve the right to adjust the fund's price to protect your investment from the costs of buying and selling investments that result from other investors joining or leaving the fund. The amount of any such adjustment is calculated by reference to the estimated costs of dealing in the underlying investments, including any dealing spreads, broker commissions and transfer taxes.

Typical adjustments to the fund's price are to increase it by 0.34% for net inflows or decrease it by 0.38% for net outflows.

We usually adjust the price to the maximum extent possible when the value of net contributions or withdrawals is significant, which helps to protect your investment from the costs of the resultant transactions.

1The fund's financial year end is 30 November 2016 Figures in these sections are as at 30 November 2016.

Holdings

 

Literature

Factsheets

Invesco Perpetual Asian Equity Income Fund Factsheet  (252 KB)

KIIDs

Invesco Perpetual Asian Equity Income Fund KIID acc   (203 KB)

Invesco Perpetual Asian Equity Income Fund KIID acc (No trail)  (203 KB)

Invesco Perpetual Asian Equity Income Fund KIID acc (Y)  (202 KB)

Invesco Perpetual Asian Equity Income Fund KIID acc (Z)  (202 KB)

Invesco Perpetual Asian Equity Income Fund KIID inc  (202 KB)

Invesco Perpetual Asian Equity Income Fund KIID inc (No trail)  (203 KB)

Invesco Perpetual Asian Equity Income Fund KIID inc (Y)  (202 KB)

Invesco Perpetual Asian Equity Income Fund KIID inc (Z)  (202 KB)

Application form

ICVC & ISA Application booklet 16/17  (238 KB)

ICVC & ISA Application booklet 17/18  (194 KB)

Product & fund information

ICVC Supplementary Information Document (SID)  (4 MB)

ICVC ISA Key Features and Terms and Conditions  (1 MB)

Financial reports

Invesco Perpetual Far Eastern Investment Series Interim Report 2016 (Short Report)  (334 KB)

Invesco Perpetual Far Eastern Investment Series Interim Report 2016 (Long Form)  (620 KB)

Invesco Perpetual Far Eastern Investment Series Interim Report 2015 (Short Report)  (272 KB)

Invesco Perpetual Far Eastern Investment Series Interim Report 2015 (Long Form)  (506 KB)

Invesco Perpetual Far Eastern Investment Series Annual Report 2015 (Short Report)  (419 KB)

Invesco Perpetual Far Eastern Investment Series Annual Report 2015 (Long Form)  (1 MB)

Forms

ISA Additional Permitted Subscription application form  (92 KB)

Progress on reform in India

Article

13 July 2016

Tim Dickson, Asian Equities Fund Manager, Invesco Perpetual

Tim Dickson finds reasons to be optimistic about Modi’s reform programme in India, and the positive impact it may have on economic growth in the medium term.

China in focus

Article

28 September 2015

Stuart Parks, Head of Asian Equities, Invesco Perpetual

Stuart Parks considers the importance of China’s economic slowdown and what it means for other parts of Asia.

Invesco Asia Trust plc update

Video

19 July 2016

Ian Hargreaves, Asian Equities Fund Manager, Invesco Perpetual

In his latest update, Ian discusses his approach to the management of the investment trust, the countries and sectors that are attracting him and how he is positioning the investment trust in the current global uncertainty.

 

Investment risks

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. Past performance is not a guide to future returns.

The fund invests in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise.

The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.

Important information

Yield and performance figures are based on the z (accumulation) share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the accumulation share class, without any adjustment for fees. Performance figures for all share classes can be found in the relevant Key Investor Information Document.

All fund portfolio figures are as at date shown (source: Invesco Perpetual).

Performance figures are shown in sterling, inclusive of reinvested income and net of the ongoing charge and portfolio transaction costs to date shown. The figures do not reflect the entry charge paid by individual investors. Sector average performance is calculated on an equivalent basis (source: Lipper).

Where Invesco Perpetual has expressed views and opinions, these may change. Where securities are mentioned they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell.

For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports and the Prospectus, which are available using the contact details shown.