Charges and savings
|Fund manager's initial charge||5.00%|
|HL saving on initial charge||5.00%|
|HL Dealing charge||Free|
|Net initial charge||0.00%|
|Fund manager's annual charge||1.50%|
|HL Annual saving (loyalty bonus)||0.25% 2|
|Net Annual charge||1.25%|
|Fund manager's other expenses||0.17%|
|HL Platform charge||Free|
Please read the Simplified Prospectus/Key Investor Information Document in addition to the information above. Further details available in the HL guide to fund prices, savings and yields.
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HL research - our view on this fund
The fund's recent performance has been driven by a healthy weighting to financials such as banks, brokers and real estate, which have benefitted from increased investor risk appetite. Holdings in Brokers Nomura Holdings and Daiwa Securities have been particular bright spots, reflecting the sensitivity of their earnings to rising stock markets and trading volumes. Exposure to Japanese exporters such as steel manufacturer JFE Holdings and semiconductor wafer manufacturer Sumco has also been beneficial, as the yen has weakened. A weak yen makes the exports of Japanese companies cheaper for foreign buyers and has helped drive share price gains.
That said, not everything has worked in the fund's favour. Significant exposure to the technology sector has detracted from recent performance. The fund's manager, Paul Chesson, believes valuations in the sector remain highly attractive and has recycled profits from financials into selected technology stocks, to take advantage of share price falls.
Despite the strong recent rally, Paul Chesson remains bullish in his outlook for the Japanese stock market, and believes valuations remain attractive. He notes that the Japanese economy grew by 2% in real terms in 2012, which compares favourably with many other developed economies. Looking forward, he believes the Japanese economy can continue to achieve similar levels of expansion this year. He also expects the yen to remain weak which should provide a further boost to exporters. As a result the fund continues to be biased towards economically sensitive areas such as financials, technology, shipping, and manufacturers of autos and electrical appliances, where valuations reflect a slower earnings recovery than Paul Chesson expects.
The aggressive positioning of this fund means it is likely to be volatile, and will inevitably undergo periods of underperformance. The current bias towards economically sensitive areas means it is likely to struggle in falling markets, as we saw in 2011, but could perform strongly when risk appetite increases, as we have seen recently. Paul Chesson is an experienced and capable fund manager, having successfully run Japanese investments at Invesco Perpetual since 1997. For long-term investors, willing to ride out the inevitable ups and downs, we believe he has the ability to deliver attractive returns. The fund remains on our Wealth 150 list of favourite funds across the major sectors.
|Ex-dividend date||01 December 2013|
|Payment date 4||31 January 2014|
Top 10 sectors
|Technology Hardware & Equipment||19.13%|
|Electronic & Electrical Equipment||13.53%|
|Automobiles & Parts||9.96%|
|Forestry & Paper||4.59%|
Top 10 countries
|Cash and Equiv.||0.33%|
Some of the data on this page and other related pages is provided to you for your information and is received from the Fund Management Company administering this fund. Hargreaves Lansdown accepts no liability for the reliability or accuracy of the data provided by third parties.
2 Annual saving (loyalty bonus) only available on holdings worth over £1,000. Loyalty bonuses in the Vantage Fund & Share Account are paid net of basic rate tax. Loyalty bonuses in the Vantage ISA and SIPP are tax-free and paid gross.
4 If you elect to receive the income from a Vantage ISA or Vantage Fund & Share Account, we will collect any dividends for you and then pay them directly into your bank account within the first 10 working days of the following month.
Prices as at 19-06-2013. Data as at 30/04/2013.