Invesco Asia Trust PLC on Wednesday said the long-term future holds ‘very attractive’ opportunities for shareholders, despite a fall in its net asset value amid a tough geopolitical backdrop.

The Oxfordshire, England-based and Asia-focused investor, which prioritises long-term capital growth, said its NAV at April 30 was 366.48 pence per share, down 2.8% from 377.21p at the same time in 2022.

Its return for the year ended April 30 was positive 1.3%, up from negative 6.7% the previous year. However, on Monday the return was negative 0.2%.

In London on Tuesday, shares in Invesco Asia were down 0.9% at 340.04p.

The investor paid 14.80p per share in total dividends for the year, down 3.3% from 15.30p. Its first interim dividend had been 7.20p, down from 7.70p, while the second was unchanged from last year at 7.60p.

Invesco said the Asian geopolitical environment had been uncertain recently, and remained somewhat concerning due to ‘strained’ US-China relations and rising US interest rates. On the other hand, it said Asian economies were overall recovering well from the Covid-19 pandemic.

‘Asian economies have proved robust in the absence of the inflation problems that have plagued the West and the UK in particular,’ commented Chair Neil Rogan. ‘Corporate earnings have rebounded which means that markets today are trading at valuations that are much more attractive than a year ago...valuations such as these have historically proven to be attractive entry points, even when geopolitical or macroeconomic conditions might have suggested otherwise.’

Because of this positive macro-economic outlook, Invesco Asia did not undertake any buybacks in financial 2023. This was despite its shares trading at a 12.4% discount which it said was above its 11.6% ‘tolerance,’ although said discount later narrowed to 8.7% on Monday.

‘We believe that the investment case for the company is strong and so too is the combination of policies enshrined in our corporate proposition,’ explained Rogan. ‘The next period is quite likely to prove to be a very attractive long-term opportunity for shareholders.

‘We simply do not want to stand in their way.’

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