Last checked at 19 Mar 2019 12:12
London, UK, 19 March 2019
Edison issues review on Invesco Asia Trust (IAT)
Invesco Asia Trust (IAT) aims to provide significant capital returns over the long-term through investing in listed companies in Asia. It follows a rigorous bottom-up investment process with few constraints, to build a relatively concentrated 50-70 stock portfolio representing the manager's highest-conviction ideas over a three- to five-year horizon. The approach also emphasises the valuation discipline and favours cash-generative companies, which is reflected in the underlying portfolio yield of c 3%. IAT has increased its annual dividend in seven out of the past 10 years and over that time has delivered an annualised NAV total return of c 16%.
IAT is trading on a discount to ex-income NAV of 4.8%, which is below the three-year average of 10.6%. The board has a proactive approach to managing the discount and, under the new chairman Neil Rogan, has recently taken measures to broaden the trust's appeal. These include the introduction of an interim dividend (2.8p per share) and a tiered fee structure, reducing the fee for assets over £250m. The board also aims to raise the trust's profile, including increased direct engagement with individual investors. These efforts could help narrow the trust's discount.
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