uploads///Portfolio Breakdown of the ASIAX

Exploring ASIAX’s Portfolio Composition Year-to-Date in 2016


Jul. 1 2016, Published 2:06 p.m. ET

Invesco Asia Pacific Growth Fund overview

The Invesco Asia Pacific Growth Fund (ASIAX) invests “in a diversified portfolio of reasonably priced, quality companies in the Asia Pacific region, excluding Japan, with strong fundamentals and sustainable earnings growth.”

Though the fund retains the flexibility of investing across market capitalizations, its focus areas are the small- and mid-cap segments. The fund is not currency hedged, but its managers can take such positions if it’s deemed appropriate.

According to the fund’s literature, its managers employ fundamental research to identify quality growth companies. They employ bottom-up research, which looks at the state of a company rather than looking at sector- or country-specific trends, in order to select securities.

Article continues below advertisement

The fund’s assets were spread across 44 securities as of May 2016, and it was managing assets worth $844.2 million. As of March, its equity holdings included Broadcom (AVGO), Taiwan Semiconductor Manufacturing Company (TSM), China Mobile (CHL), NetEase (NTES), and Class B shares of Telekom Indonesia (TLK).

Portfolio changes in the Invesco Asia Pacific Growth Fund

Financials is the most invested sector in ASIAX, occupying over one-quarter of the portfolio. A distant second is the information technology sector, closely followed by the consumer discretionary sector. The top three sectors form 49% of ASIAX’s portfolio. An interesting aspect of the fund is its high allocation of cash and funds combined.

China is the country in which ASIAX invests the most, with stocks from the country forming 22.5% of its portfolio. Hong Kong and Australia are the only other countries that make up over one-tenth of the portfolio each. Singapore and the Philippines round off ASIAX’s top five invested countries.

Financials have broadly maintained their share of the portfolio pie in the 12 months ended May 2016. Among consumer-focused sectors, while consumer discretionary stocks occupy less of the portfolio than they did a year ago, the fund’s exposure to consumer staples has increased sharply. The high cash and funds position maintained by ASIAX shows its unwillingness to invest in equities at this point in time.

With this portfolio positioning, how has the Invesco Asia Pacific Growth Fund Class A fared year-to-date in 2016 and why? Let’s look at that in the next article.


More From Market Realist