Standard & Poor’s Fund Services has assigned a three-star rating to the Invesco Wholesale Asian Consumer Demand Fund.
S&P placed the fund ‘On Hold’ on September 1, 2011 following notification by the manager that it would move to an Asian consumer demand themed strategy from a broad-based Asian equities strategy.
By focusing on internally generated consumer demand, Invesco seeks to take advantage of the increasing consumerism of Asian economies, and to minimise the cyclical effects associated with companies predominantly exposed to non-Asia related activities. The change in strategy coincided with a move to a new benchmark, from the MSCI All Countries Far East Free ex Japan Index which excluded India, to the MSCI All Countries Asia ex Japan index.
S&P holds an increasingly favourable view of the investment credentials held by Invesco’s Hong Kong-based Asian investment team. The pairing of well-credentialled lead and support portfolio managers is well considered. Furthermore, the average team tenure of over seven years speaks to a strong culture and team dynamic, factors which S&P believes are conducive to ongoing team stability and cohesiveness.
“The fund represents a unique, and in our opinion, compelling offering within its peer group. However we will be looking for greater stability in fund structure, and a longer and more consistent performance track record, before gaining a higher-level of conviction in the fund and its ability to regularly outperform,” said Nathan Bode, S&P fund analyst.
