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Invesco Japan Class Y - Accumulation (GBP)

Sell:279.46p Buy:279.46p Change: 0.63p (0.23%)
Prices as at 7 August 2020
Change: 0.63p (0.23%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 7 August 2020
Change: 0.63p (0.23%)
Prices as at 7 August 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
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 does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund is managed by Paul Chesson, an experienced fund manager who has been investing in Japanese shares at Invesco Perpetual since 1997. He adopts a high-conviction investment approach, which is often contrarian in nature and means the manager is prepared to move around the positioning of the portfolio relatively aggressively if his views change.

While Paul Chesson has outperformed the Japanese stock market over a long period of time, performance has been volatile and overall we do not feel investors have been sufficiently compensated for the risks taken. In our view, there are other talented fund managers in the Japan sector who have demonstrated more consistent performance and a greater ability to add value through astute stock-picking over a prolonged period. Furthermore, investors are able to access these managers at a lower ongoing fund charge, which can make a real difference to performance over the long term.

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. This changed after Shinzo Abe was elected Prime Minister in 2012. He introduced a number of policies to stimulate economic growth and created more interest in Japan's markets. We think Japanese funds could diversify a global portfolio focused on long-term growth. There are a handful of fund managers we think have the potential to outperform the broader Japanese market over the long term, each with different approaches.

Performance Analysis

Paul Chesson has outperformed the broader Japanese stock market over a long period of time, although performance has been volatile. The manager is prepared to take a different view to other investors, which means the fund can be positioned quite differently to its peers and we would therefore also expect it to perform differently to the wider market and the average fund in the sector at times. That said, while he has delivered some strong performance over short periods, such as in 2009, this has often been followed with longer periods of more lacklustre performance against the stock market. Furthermore, we feel the manager's stock selection, a key factor we analyse when assessing a fund manager's ability, has been variable.

Investment Philosophy

The fund adopts a flexible, high conviction approach aiming to deliver long-term capital growth.

Process and Portfolio Construction

Paul Chesson places emphasis on analysing the wider economic environment. These economic views help him to gain an understanding of company prospects and, in particular, to establish which areas of the stock market are under or overvalued. He seeks to invest in those companies and sectors which he views to be significantly undervalued. He will also often take a different view from the consensus and this means the fund can be positioned quite differently to its peers. The manager is also willing to make significant alterations to this positioning if his views change.

The nature of Paul Chesson's approach means he tends to maintain a concentrated portfolio of around 30-50 investments and each can contribute significantly to returns, although this increases risk. The manager also invests around half the fund in medium-sized and higher-risk smaller companies, which is an area of the market often overlooked by other investors and therefore offers the potential to add value.

question mark Manager Track Record Based on HL Quantitative Research

  • Invesco Japanese Equity A Annual...
  • Invesco Japan (UK) Acc
  • FTSE Japan TR

Fund Track Record

07/08/15 to 07/08/16 07/08/16 to 07/08/17 07/08/17 to 07/08/18 07/08/18 to 07/08/19 07/08/19 to 07/08/20
Annual return 9.64% 18.15% 6.04% -6.71% -13.94%

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.

Fund Management Group Comment

Invesco is one of the largest investment managers in the UK and they believe there are no short cuts to long-term investment success. They offer a large range of funds across a number of sectors and each follows a clear, disciplined investment process. The company has a particularly strong reputation for their UK equity and fixed interest funds.

Information about the fund

Fund manager biography

manager photo
Manager Name: Tony Roberts
Manager start date: 1 December 2009
Manager located in: Henley-on-Thames

Based in Henley-on-Thames, Tony is responsible for the management of a number of Japanese equity portfolios alongside fellow fund manager, Paul Chesson. Tony began his investment career in 1995 as an analyst and fund manager with Clerical Medical after two years with actuarial consultants, Godwins. He joined our company in 2000 to work alongside Paul Chesson, Head of Japanese Equities. He holds a BSc in Mathematics from Southampton University and is a member of the CFA Society of the UK.

manager photo
Manager Name: Paul Chesson
Manager start date: 1 February 2000
Manager located in: Henley

Paul joined the company in 1993 and applied his breadth of experience to running Japanese equity funds. Paul began his investment career in 1990 at Touche Remnant, specialising in Japanese Equities. He holds an MA, Law from Oxford University and is an associate member of the Association for Investment Management.

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