Invesco Korean Equity Fund
A-AD Shares
31 May 2017
Summary of fund objective
Quarterly fund commentary
The objective of this Fund is to achieve
long term capital growth by investing
directly or indirectly in securities of Korean
companies or other entities or subsidiaries
of Korean companies and securities listed
or traded on the Korean securities
markets. For the full objectives and
investment policy please consult the
current prospectus.
South Korea’s equity market achieved a strong return in Q1 on the back of positive earnings
guidance by some of the country’s major corporations, as well as the Korean won’s
appreciation relative to other major currencies. The IT sector led the market higher,
benefiting from better-than-expected earnings and positive management guidance. The
telecoms sector made gains on robust earnings growth and an upbeat dividend policy.
Although the consumer discretionary sector struggled earlier in the year on concerns over
US trade protectionism and tensions with China, positive data points such as better domestic
traffic and sales figures provided support to share prices during the quarter. However, the
healthcare sector lagged the broader market as R&D expenses in a number of
pharmaceutical companies were higher than expected. The consumer staples sector also
lagged as price competition eroded profit margins. We continue to seek to invest in
companies with quality management and sustainable business models. We prefer companies
with long-term secular earnings growth, with our bottom-up stock selection process leading
us to take less exposure in companies with volatile earnings, such as IT. Instead, the portfolio
has a tilt towards domestic Korean consumer staples, consumer discretionary and healthcare
companies. We believe these companies are better-positioned to take advantage of long-term
growth opportunities.
Key facts
Simon Jeong
Hong Kong
Managed fund since
May 2006
Share class launch
05 November 1996
Original fund launch 1
01 February 1992
Legal status
Mutual Fund - Irish Unit Trust authorised
as UCITS
Share class currency
USD
Share class type
Income
Fund size
USD 152.17 mn
Reference index
Korea Composite Stock Price Index-Price
Bloomberg code
INVKGDA ID
ISIN code
IE0003842543
Settlement date
Trade Date + 3 Days
Morningstar RatingTM
AAAAA
Indexed performance*
Fund
Index
170
160
150
140
130
120
110
100
90
80
05/12
05/13
05/14
05/15
05/16
05/17
Data points are as at month end.
Cumulative performance*
in %
YTD
1 year
3 years
5 years
Fund
24.67
-3.58
7.42
39.45
Index
24.96
25.98
7.22
34.23
Quartile ranking
Absolute ranking
2
4
2
1
6/18
17/17
7/17
1/15
Mstar GIF OS Sector: Korea Equity
Calendar year performance*
in %
2012
2013
2014
2015
2016
Fund
2.75
5.05
10.72
19.00
-25.82
Index
17.70
2.17
-8.56
-4.02
0.31
Standardised rolling 12 month performance**
in %
Fund
31.03.12
31.03.13
31.03.13
31.03.14
31.03.14
31.03.15
31.03.15
31.03.16
31.03.16
31.03.17
-2.41
10.03
18.36
4.82
-14.92
The standardised past performance information is updated on a quarterly basis.
Past performance is not a guide to future returns.
*Source: © 2017 Morningstar. Gross income re-invested to 31 May 2017 unless otherwise stated. The figures do not reflect the entry charge payable by individual
investors. **Gross income re-invested to 31 March 2017. All performance data on this factsheet is in the currency of the share class. Reference Index Source:
Factset. Please refer to Page 3 for Risk Warnings and Important Information.
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Invesco Korean Equity Fund
A-AD Shares
31 May 2017
Top 10 holdings*
(total holdings: 25)
Holding
Sector
Samsung Electronics
Information Technology
8.1
Green Cross Holdings
Health Care
6.6
Ottogi
Consumer Staples
6.0
Hyundai Mobis
Consumer Discretionary
5.6
Dongsuh
Consumer Staples
4.9
BGF Retail
Consumer Staples
4.9
Samsung SDI
Information Technology
4.8
Hanmi Pharm
Health Care
4.8
E-Mart
Consumer Staples
4.7
Yuhan
Health Care
4.5
Geographical weightings of the fund in %*
%
Geographical weightings*
Sector weightings*
in %
South Korea
99.0
Cash
1.0
South Korea
g Cash
g
Sector weightings of the fund in %*
Consumer Staples
g Information Technology
g Consumer Discretionary
g Health Care
g Industrials
g Financials
g Telecommunication
Services
g Utilities
g Cash
in %
Consumer Staples
32.9
Information Technology
18.1
Consumer Discretionary
17.9
Health Care
16.7
Industrials
4.5
Financials
4.3
Telecommunication Services
3.4
Utilities
1.3
Cash
1.0
g
NAV and fees
Current NAV
USD 29.66
12 month price high
USD 32.59 (08/06/2016)
12 month price low
USD 23.38 (23/12/2016)
Minimum investment 2
USD 1,500
Entry charge
Up to 5.00%
Annual management fee
2.0%
Ongoing charges
2.38% (30/11/2016)
Financial characteristics*
Average weighted market capitalisation
Median market capitalisation
USD 28.48 bn
USD 6.08 bn
3 year characteristics**
Alpha
1.99
Beta
0.54
Correlation
0.49
Information ratio
0.00
Sharpe ratio
0.12
Tracking error in %
16.91
Volatility in %
17.51
Past performance is not a guide to future returns.
Source: *Invesco. Portfolio weightings and allocations are subject to change. **Morningstar.
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Invesco Korean Equity Fund
A-AD Shares
31 May 2017
Risk Warnings
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not
get back the full amount invested. As a large portion of the fund is invested in less developed countries, you should be prepared to accept
significantly large fluctuations of the value of the fund. As this fund is invested in a particular geographical region, you should be prepared
to accept greater fluctuations of the value of the fund than for a fund with a broader investment mandate. The fund invests in a limited
number of holdings and is less diversified, and therefore this may result in large fluctuations of the value of the fund.
Important Information
1
The Original Fund Launch date shown herein is different from the fund launch date shown in the KIID, as it indicates the launch
date of a previous fund that was merged into the fund shown and therefore the track record starts with this previous fund.
Further information can be found on our website: www.invescointernational.co.uk.
2
The minimum investment amounts are: USD 1,500 / EUR 1,000 / GBP 1,000 / CHF 1,500 / SEK 10,000. Please contact us or
refer to the most up to date Prospectus for details of minimum investment amounts in other currencies.
Where Invesco has expressed views and opinions, these may change. If investors are unsure if this product is suitable for them, they
should seek advice from a financial adviser. The distribution and the offering of the fund or its share classes in certain jurisdictions may be
restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with
any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not
authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the fund should
inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any
foreign exchange controls and (iii) any relevant tax consequences. For the purposes of UK law, the fund is a recognised scheme under
section 264 of the Financial Services & Markets Act 2000. The protections provided by the UK regulatory system, for the protection of
Retail Clients, do not apply to offshore investments. Compensation under the UK’s Financial Services Compensation Scheme will not be
available and UK cancellation rights do not apply. The fund is available only in jurisdictions where its promotion and sale is permitted. This
document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy.
Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are
any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as
recommendations to buy or sell securities. The ongoing charges figure is based on annualised expenses for the period ending
30/11/2016. This figure may vary from year to year. It excludes portfolio transaction costs except in the case of an entry or exit charge
paid by the Fund when buying or selling shares/units in another fund. Please refer to the most up to date relevant fund and share classspecific Key Investor Information Document, the latest Prospectus and Annual or Interim Short Reports for more information on our funds.
UK based investors should also refer to the relevant Supplementary Information Document. This information is available using the contact
details shown. Issued in Jersey and Guernsey by Invesco International Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier,
Jersey, JE2 4WD. Regulated by the Jersey Financial Services Commission. Issued in the UK by Invesco Global Investment Funds Limited,
Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct
Authority. Issued in Dubai for Professional Clients only by Invesco Asset Management Limited, PO Box 506599, DIFC Precinct Building No
4, Level 3, Office 305, Dubai, United Arab Emirates. Regulated by the Dubai Financial Services Authority.
© 2017 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers;
(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of this information.
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