HEAD-TO-HEAD: Invesco versus Schroders

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Manager review

The relative performance and stability of the two funds’ management teams are key factors in Share’s assessment of their longer term capability and their prospects of delivering strong risk-adjusted returns.

“Currently, we are happier with the Schroders management,” said Share.

“The lead manager, Louisa Lo, is very savvy and has an impressive track-record since taking over the reins in 2002, and is also well-supported by one of the largest teams that focus on the region,” she said.

“There have been four or five departures within the past two years, so we are watching for any signs that these might represent a trend, but our confidence in Lo and her two main assistants, who specialise in Asia equities and H-shares, respectively, overrides any incipient concerns.”

In contrast, Invesco’s fund has been experiencing rather more disruption. In part, this has been due to the professional success of its lead manager, Mike Shiao, who has enjoyed a series of promotions at the firm.

“His greater responsibilities have possibly deflected his focus away from the Greater China fund,” said Share.

Shiao was initially a mainland China specialist before moving to run the Greater China effort, and is now head of Asia ex-Japan equities. He also manages the Asia Consumer Fund – and perhaps economies of scale account for the 40% weighting to consumer staples and discretionary stocks in the Greater China fund.

Shiao has been supported by Lorraine Kuo since 2011, “but mostly as an analyst. She was only named as a portfolio manager last year, when she took over responsibility for the Invesco Asia Balanced Fund”.

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