Invesco Asia Dragon Trust Marks Strong First Year

Edison Investment Research Limited has released a report on the Invesco Asia Dragon Trust (IAD), celebrating its first anniversary since the merger of Invesco Asia Trust and Asia Dragon Trust. The trust achieved a notable 12-month NAV total return of 26.5% by the end of December 2025. This success was partially driven by a strong Chinese equity market and a surge in Asian tech stocks.

The portfolio's recent strong performance can be attributed to attractive shareholder returns, including dividends and buybacks, primarily in China, South Korea, and ASEAN countries. South Korea particularly benefited from the government's Corporate Value-Up program, enhancing shareholder returns.

With reasonable valuations and a strong corporate earnings outlook for 2026, along with a weaker US dollar, the trust's managers remain optimistic about the prospects for emerging market equities.