Benefiting from strength in Chinese equities

Invesco Asia Dragon Trust (IAD) delivered an 18.1% net asset value (NAV) total return (TR) over the 12 months to end-July 2025, supported by the strong performance of Asian markets, especially China and Hong Kong. The performance was ahead of the 16.4% return delivered by its benchmark index (MSCI AC Asia ex-Japan), reinforcing our confidence in the managers’ strategy. The case for the trust’s investments is often contrarian at the point of purchase and may take time to play out, but over the long term IAD has delivered returns above the benchmark and its peers. The fund does not structurally favour any region, with one of its current strongest convictions being a revival of consumption in China, and there have been signs of positive eco...