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||1.25%|
|HL Annual saving (loyalty bonus)||0.15% 2|
|Net Annual charge||1.10%|
|Fund manager's other expenses||0.23%|
|Performance fee||Yes View risks|
|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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Before you invest please read the documents below.
HL research - our view on this fund
One fund manager who believes Abe-enomics will be successful is Scott McGlashan, who co-manages the JO Hambro Japan Fund with Ruth Nash. He believes increased monetary stimulus from the Bank of Japan is positive, along with the focus on speeding up the reconstruction of areas damaged by 2011's earthquake and tsunami. He also believes economic reforms, deregulation and the signing of trade agreements, such as the TransPacific agreement between various Pacific countries and the US, will have beneficial long-term effects.
Scott McGlashan's positive views have been reflected in the portfolio which currently has a bias towards companies more reliant on stronger economic growth. The fund also has a distinct bias to higher risk smaller and medium-sized companies, with only 20% invested in larger counterparts.
The managers tend to prefer companies that own tangible assets such as property and machinery over software, gaming or internet companies which they believe are harder to value. Exposure to industrial companies has therefore been increased. They believe increasing industrial production and a weaker yen, which makes Japanese goods cheaper to foreign buyers, will boost profits in the sector.
Property companies and companies with significant exposure to property have also been added in anticipation of them benefiting from falling vacancy rates. Tokyo Broadcasting, for example, could not only see profits rise in its TV division if advertising revenues increase, but also from its large portfolio of central Tokyo property. The managers do not believe the property portfolio is being factored into the value investors are currently placing on the company.
Elsewhere, Scott McGlashan and Ruth Nash are looking for companies with diverse earnings streams rather than those reliant on a single product or service. They cite Keisei Electric Railway as among their favourite companies. As well as running a successful rail and bus franchise it owns properties and land surrounding stations and along the tracks. It has developed commercial and residential buildings for rent and sale, while it also operates retail units at or close to stations. Its diverse earnings have helped drive strong cash flow and a robust balance sheet.
The managers aim to ensure the fund is diversified across a number of sectors, but at the stock level the portfolio is reasonably concentrated, typically containing between 50 and 60 holdings. This approach allows each stock to contribute significantly to performance, but it is higher risk.
Despite the strong run in the Japanese stock market over the past few months the managers remain positive. They continue to find opportunities among profitable, cash-rich companies, which they believe are attractively valued. We have long admired the stock picking ability of Scott McGlashan and Ruth Nash and believe their focus on smaller and medium-sized companies sets them apart from some peers. Please remember past performance is not a guide to the future. This fund remains on the Wealth 150 list of favourite funds in each sector. Please note the fund carries a performance fee and as it is an offshore fund you are not normally entitled to compensation through the UK Financial Services Compensation Scheme. If you are considering an investment please ensure you read the fund's Key Investor Information Document which contains further details.
|Ex-dividend date||31 December 2013|
|Payment date 4||28 February 2014|
Top 10 holdings
|Tokio Marine Holdings||3.85%|
|Aoyama Trading Co.||2.96%|
|Keisei Electric Railway Co.||2.95%|
|Japan Securities Finance Co.||2.93%|
|Sumitomo Mitsui Trust Holdings||2.84%|
|Nitto Denko Corp.||2.83%|
|Toshiba Tec Corp.||2.67%|
|Tokai Tokyo Financial Holdings||2.44%|
|Alps Electric Co.||2.15%|
Top 10 sectors
|Electronic & Electrical Equipment||10.38%|
|Cash and Equiv.||7.73%|
|Technology Hardware & Equipment||6.63%|
|Real Estate Investment & Services||5.19%|
Top 10 countries
|Cash and Equiv.||7.73%|
|Direct Property and REITs||1.44%|
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 18-06-2013. Data as at 30/04/2013.