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FSSA Japan Focus Class B Class B - Accumulation (GBP)

Sell:192.86p Buy:192.86p Change: 5.17p (2.76%)
Prices as at 22 April 2024
Sell:192.86p
Buy:192.86p
Change: 5.17p (2.76%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 22 April 2024
Sell:192.86p
Buy:192.86p
Change: 5.17p (2.76%)
Prices as at 22 April 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Sophia Li has been the fund's lead manager since launch in 2015. She joined First Sentier in 2009, initially working as a China analyst, but has covered Japan since 2011. She manages this fund alongside another similarly-managed Japan equity fund. However given the high degree of crossover between the two funds, and they use the same investment process, we think the workload is manageable.

A significant attraction of this fund is Li's support from the experienced First Sentier team, including co-manager Martin Lau. He provides oversight and challenge, along with a wealth of experience. That said, Li has the freedom to invest her own way, which we think will keep her motivated and focused on the job in hand.

We think this fund is a good option for exposure to Japan within a global portfolio aiming to deliver long term growth. Its focus on high-quality companies means it could work well alongside another fund focused on Japanese companies that have been through a rough patch, but with the potential to recover.

Our view on the sector

Japan is home to some of the best-known businesses on the planet. Toyota, Honda, Panasonic, and Nintendo to name a few. There are also lesser-known businesses with the potential to be the household names of tomorrow. But years of sluggish growth put people off investing in the country. Former Prime Minister, Shinzo Abe, introduced policies designed to stimulate the economy and reignite interest in Japan's markets. Investor sentiment began to change but after 8 years at the helm, he announced his retirement and was replaced by Yoshihide Suga in September 2020. Suga's appointment initially offered the promise of fresh and progressive government policies and continued economic support. His tenure was dominated by the pandemic and he faced criticism over how he handled the virus. After one year in office, he stepped down as Prime Minister and has been replaced by fellow Liberal Democratic Party (LDP) member Fumio Kishida.

Performance Analysis

The fund's performed well since launch in October 2015, significantly outperforming the broader Japanese stock market. Our analysis puts this down to the team's ability to select companies with outstanding prospects, regardless of their size or what sector they're in. Remember past performance isn't a guide to the future.

Investment Philosophy

We like the culture and philosophy that's been cultivated at First State Stewart Asia (FSSA, part of the broader First Sentier Investors group). Their philosophy is founded on stewardship - when they make an investment, they see themselves as part-owners of the business and engage with companies to make sure they're run in a way that should benefit all shareholders.

FSSA also places emphasis on recruiting and retaining great people. Every manager and analyst is an advocate of the team's overriding philosophy.

Process and Portfolio Construction

Li and the team at First Sentier look for high quality companies they can invest in for the long term. They like those with a competitive advantage that others struggle to copy, such as a well-known brand or the ability to raise prices for their products without affecting demand from customers. They should have the potential to grow earnings sustainably over the long run, and be run by reputable management teams that don't take unnecessary risks in the pursuit of short-term gains.

Importantly, companies must also take into account environmental, social and governance (ESG) factors. They should cause little, if any, harm to the environment or the labour they employ, for example. If Li and team don't think a business meets these standards or is doing enough to address a particular problem, then they won't invest

The team tends to invest in relatively few companies. This means each one can contribute significantly to returns, although it's a higher-risk approach. The managers' flexibility to invest in derivatives also adds risk.

We like the fund's relatively small size. It means the managers can pounce on new opportunities as they become available. Investors should be mindful that if the fund grows significantly in size, this could impact the fund's ability to be nimble, but we will keep an eye on flows on your behalf and ensure any change in our conviction is passed onto clients.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

22/04/19 to 22/04/20 22/04/20 to 22/04/21 22/04/21 to 22/04/22 22/04/22 to 22/04/23 22/04/23 to 22/04/24
Annual return 18.09% 31.89% -21.23% 2.79% -12.56%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

Manager Name: Sophia Li
Manager start date: 26 October 2015
Manager located in: TBC

Sophia Li is a Portfolio Manager at FSSA Investment Managers, part of First Sentier Investors. She joined FSSA Investment Managers as a graduate in 2009 and has developed extensive coverage of the companies in North Asia. Sophia Manages the team's Japan equity strategies and s the lead manager of the FSSA Japan Equity strategy and the FSSA Japan focus strategy. Sophia hold's a Master's degree in Statistics from Harvard University and a Bachelor of Science degree from Fudan University. She is also a CFA charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now