INVESCO ASIA TRUST PLC: Interim Management Statement

Invesco Asia Trust plc 
                     Interim Management Statement                           
               for the Three Months ended 31 January 2014                    
Objective of the Company 
Invesco Asia Trust plc (`the Company') is a UK investment trust listed on the
London Stock Exchange. The Company was launched in July 1995. 
The objective of Invesco Asia Trust plc is to provide long-term capital growth
by investing in a diversified portfolio of Asian and Australasian companies.
The Company aims to achieve growth in its net asset value in excess of the
Benchmark Index, the MSCI All Countries Asia Pacific ex-Japan Index (total
return), measured in sterling. 
Material Events 
No material events occurred in the period. 
Dividends 
No dividends were declared during the period. 
Managers'review, outlook and strategy 
Asian equity markets have fallen over the period as investor risk aversion has
increased due to several different factors, including renewed concerns over the
prospect of tighter global liquidity conditions as the US Federal Reserve (Fed)
confirmed that it would start to taper its asset purchase programme. Meanwhile,
optimism surrounding China's new reform agenda has been reversed by some
weaker-than-expected economic data and negative news flow surrounding a Chinese
trust fund. 
Asian economic growth has slowed, but we expect it to remain stable and be
sufficiently high in 2014 to offer attractive investment opportunities.
Inflationary pressures are less of a concern, except in India and Indonesia,
where monetary policy has had to be tightened. Although the region continues to
face a number of challenges that require structural reform, we believe markets
have to a large extent taken this into account given their current low
valuation levels relative to history and against developed markets. Consensus
earnings growth forecasts for Asia Pacific ex Japan are currently around 10.3%
for 2014, bringing valuation levels for the region to 11.7 times 2014 expected
earnings. These valuation levels remain supportive of Asia Pacific ex Japan
equity markets in our view. 
The new reform agenda in China provides us with grounds for optimism in the
medium-term; particularly the policies and initiatives that are focused on
allowing market forces a more decisive role in the allocation of resources,
improving capital allocation and shifting income towards households. There have
also been signs of positive change elsewhere in Asia, for example in India,
where the gradual emergence of a more progressive reform agenda is likely to be
the focus of this year's general election. While we acknowledge that with
change comes uncertainty, as long term investors we believe that these forces
for change could potentially drive Asia's next leg of sustainable growth. 
We believe the investment trust remains well-balanced, with exposure to a
variety of businesses that possess strong competitive advantages and
undervalued earnings growth prospects. The investment trust remains well
diversified geographically, with our largest overweight position relative to
the benchmark index being in Hong Kong and China. We continue to favour
consumer-related areas of this market, but have recently added exposure in more
economically sensitive areas trading at particularly undemanding valuation
levels, in our view. We remain underweight in Australia and its banks,
preferring to hold what we consider to be good quality banks that appear well
placed to grow their loan books profitably in countries where credit
penetration is low. However, given recent weakness in the Australian dollar we
have become more constructive on the Australian equity market, and would expect
to gradually reduce the portfolio's underweight position as and when we find
stock specific opportunities. Our exposure in the techology sector remains
significant and includes industry leaders as well as Chinese internet companies
that are fundamentally undervalued in our opinion, despite consistently
generating strong free cash flow. 
Asian equity markets should continue to enjoy the support of structural trends
that can be expected to remain intact over the medium-term, such as rising
incomes and robust domestic consumption. While Asian markets have
underperformed global markets over the last couple of years, valuations have to
a large extent discounted the negative news, and are below average levels.
While this is a challenging macroeconomic environment for investors, we believe
we can continue to find attractive investment opportunities in our universe. 
Performance- Total Return       3 Months       1 Year      3 Years      5 Years 
                                                                           
Share Price                        -8.2%        -5.3%        -0.2%       104.2% 
                                                                           
Net Asset Value                    -7.8%        -4.9%         4.8%       114.4% 
                                                                           
MSCI (All Countries) Asia          -9.3%        -7.5%         0.8%        99.3% 
                                                                           
Pacific ex-Japan Index                                                         
(Sterling Adjusted)                                                             
Source: Thomson Reuters Datastream 
All figures expressed in sterling terms 
Share Price and Discount 


                                 As at           For the Three Months Ended    
                              31-Jan-14                  31-Jan-14             
                                                                               
                                                High        Low       Average  


                                                                           
Ordinary shares mid-market      151.50       166.50        151.40     160.00   
price (pence)                                                                   
                                                                           
Net Asset Value per                                                             
                                                                           
share:                                                                          
                                                                           
- cum income (pence)            172.63                                          
                                                                           
- ex income (pence)             169.43                                          
                                                                           
Discount per ordinary                                                          
share to NAV:                                                                   
                                                                           
- cum income                     12.2%                                          
                                                                           
- ex income                      10.6%                                          
                                                                           
Discount (ex income)             9.85%                                         
average for 9 months to                                                        
date                                                                            
Source: Thomson Reuters Datastream 
Assets and Gearing 
                                            31-Jan-14 
                                                     
Total Assets less Current                                
Liabilities excl. Borrowings (£m)                   162.3                       
            
                                                      
of which cash (£m)                                 0.6 
                                                     
Overdraft (£m)                                          - 
                                                     
Borrowings (£m)                                       8.7 
                                                     
Total Shareholders' Funds (£m)                      153.6 
                                                     
Cum Income Net Asset Value -                        172.6
(pence per share)                                         
                                                     
Gross Gearing                                        5.7% 
                                                     
Net Gearing                                          5.3% 
Gross Gearing 
This reflects the amount of gross borrowings in use by the company and takes no
account of any cash balances. It is based on gross borrowings as a percentage
of shareholders' funds. 
Net Gearing 
This reflects the amount of net borrowings invested, i.e. borrowings less cash
and cash equivalents. It is based on net borrowings as a percentage of
shareholders' funds. 
Geographical Breakdown of Portfolio 
                                      31-Jan -14 
                                                
South Korea                                    22.7% 
                                                
China                                          21.5% 
                                                
Hong Kong                                      14.9% 
                                                
Taiwan                                         10.7% 
                                                
India                                           9.6% 
                                                
Australia                                       8.5% 
                                                
United Kingdom                                  4.0% 
                                                
Philippines                                     2.6% 
                                                
Singapore                                       2.5% 
                                                
Indonesia                                       1.7% 
                                                
Thailand                                        1.3% 
Top 10 Holdings 


     Investments                                           Country         % of
                                                                      Portfolio


                                                                           
1    Samsung Electronics                               South Korea         6.0% 
                                                                           
2    UPL                                                     India         3.7% 
                                                                           
3    Hutchison Whampoa                                   Hong Kong         3.7%  
                                                                               
4    Baidu - ADR                                             China         3.5% 
                                                                           
5    Taiwan Semiconductor Manufacturing                     Taiwan         3.2% 
                                                                           
6    NetEase - ADR                                           China         3.1% 
                                                                           
7    Hyundai Motor - Preference Shares                 South Korea         3.0% 
                                                                           
8    Industrial and Commercial Bank of China                 China         2.7% 
                                                                           
9    Korea Electric Power Corporation                  South Korea         2.7% 
                                                                           
10   HSBC                                           United Kingdom         2.5% 
Changes to Share Capital 


                                  Ordinary Shares of 10p each  
                                        Issued     Treasury    


                                                           
As at 31-Oct-13                     89,384,677    3,277,224     
                                                           
Ordinary shares bought back          (388,354)        0         
                                                           
Ordinary shares issued                       0        0         
                                                           
As at 31-Jan-14                     88,996,323    3,277,224     
Since 31 January 2014, 50,000 ordinary shares were bought back and cancelled on
3 February 2014. There have been no further issues or buybacks of shares
undertaken since 31 January 2014. 
The Company has authority to buy back shares for cancellation or placing into
treasury and to issue new shares (disapplying pre-emption rights), in each case
within specified limits. The Company expects to renew these authorities each
year. 
Price and Performance 
The Company's ordinary shares are listed on the London Stock Exchange and the
price is published in the Financial Times under `Investment Companies' and in
the Daily Telegraph under `Investment Trusts'. 
The Company's net asset value is calculated on a daily basis and can be viewed
on the London Stock Exchange website at www.londonstockexchange.com. 
Further information can be obtained from Invesco Perpetual as follows: 
Free Investor Helpline: 0800 085 8677 
Internet address: www.invescoperpetual.co.uk/investmenttrusts 
The information provided in this statement should not be considered as a
financial promotion or recommendation. 
Interim management statements are expected to be published in March and August
each year. 
For and on behalf of 
Invesco Asset Management Limited 
11 March 2014 
Ordinary Shares - Listing Category: Premium - Equity Closed-ended Investment
Funds 
Registered Office:                             Administrative Office:           
                                                                           
Perpetual Park                                 30 Finsbury Square        
Perpetual Park Drive                           London                          
Henley-on-Thames                               EC2A 1AG                        
Oxfordshire                                    Tel: 020 7065 4000               
                                                                           
RG9 1HH                                                                         
                                                                           
Registered in England No 3011768                                                
                                                                           
An investment company under Section 833 of the                                 
Companies Act 2006                                                              
END 
-0- Mar/11/2014 15:29 GMT
 
 
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