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J O Hambro Japan Inclusive - Class B - Income (GBP)

Sell:235.40p Buy:235.40p Change: 0.40p (0.17%)
Prices as at 18 October 2019
Sell:235.40p
Buy:235.40p
Change: 0.40p (0.17%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 October 2019
Sell:235.40p
Buy:235.40p
Change: 0.40p (0.17%)
Prices as at 18 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & 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 our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

Scott McGlashan and Ruth Nash are proven fund managers. Each has more than two decades' experience investing in Japan. They invest in companies of any size, including higher-risk smaller ones. It's this, as well as their focus on unloved companies, that sets the fund apart from its peers. Plus its relatively small size means it's agile enough to invest in new opportunities quickly.

Overall we think this fund is a reasonable choice for investing in Japan but we don't like the fact it comes with a performance fee. The fund also has a higher ongoing charge than our favoured funds investing in this area.

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

The managers have a long track record of good performance. A focus on smaller companies has generally boosted returns over time, although it can increase volatility.

They tend to invest in companies that are overlooked by other investors, possibly because they've faced some difficulties, but have the potential to recover. It's worked well for them over the long term but there are no guarantees this will be repeated. Companies can stay out-of-favour for some time and funds that invest in them can go through prolonged periods of poor performance. That's been the case with this fund over the past few years.

Investment Philosophy

The managers think there's plenty of opportunity for investors prepared to look beyond Japan's biggest companies to uncover hidden gems. They look for companies with strong financials and high cash flows.

Process and Portfolio Construction

Scott McGlashan and Ruth Nash look for out-of-favour companies that they can buy shares in at a relatively low share price. If these companies improve, the expectation is they'll become popular with investors again and their share prices will rise. The managers then aim to take a profit.

Meeting company managers is a key part of their process - they meet over 200 each year. They normally invest over a six to eighteen month timeframe, although this can change depending on their outlook for a company.

Please note as this is an offshore fund you're not normally entitled to compensation through the UK Financial Services Compensation Scheme.

question mark Manager Track Record Based on HL Quantitative Research

  • Invesco Japan (UK) Acc
  • FTSE Japan TR
  • Close Finsbury Japan
  • JOHCM Japan B GBP
  • FTSE Japan TR
FROM: TO:


Fund Track Record

18/10/14 to 18/10/15 18/10/15 to 18/10/16 18/10/16 to 18/10/17 18/10/17 to 18/10/18 18/10/18 to 18/10/19
Annual return 16.71% 23.55% 13.78% -2.82% -0.59%

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

In 2011 BT Investment Management Limited (BTIM), an Australian-listed fund management group, completed its acquisition of JO Hambro Capital Management (JOHCM). There have been no changes in the day-to-day operations, and JOHCM now operates as a stand-alone boutique within the BTIM group. The fund managers continue to have full discretion regarding investment decisions.

JO Hambro was launched in 1993 by James Hambro and Christopher Mills. Every JOHCM fund has a predetermined maximum amount of money it will accept, and once it reaches that size it is closed to new investors. We feel this is generally positive for existing investors, as it keeps the funds nimble enough to react quickly to market developments, and allow the fund managers to focus on delivering sustained outperformance.

Information about the fund

Fund manager biography

manager photo
Manager Name: Ruth Nash
Manager start date: 30 April 2005
Manager located in: London

Ruth is Senior Fund Manager of the JOHCM Japan Strategy and the JOHCM Japan Dividend Growth Fund. She started work at Coopers and Lybrand in Edinburgh in 1985. In 1987, she joined Scottish Equitable Life Assurance's Japan desk as an Analyst, before moving to London in 1988 to join Royal Insurance as a Fund Manager. In 1996, she joined Prudential Portfolio Managers as a Fund Manger and in May 1999 was recruited to manage the Japanese portfolio of the British Steel Pension Fund. Ruth holds an MA (Hons) in French/German from the University of St Andrews.

manager photo
Manager Name: Scott McGlashan
Manager start date: 28 May 2004
Manager located in: London

Scott is Senior Fund Manager of the JOHCM Japan Strategy and the JOHCM Japan Dividend Growth Fund. He entered the fund management industry in 1976 and has specialised in the Japanese stock market since 1982. Prior to joining JOHCM, Scott was Chairman of Jade Absolute and Lead Manager of the Close Finsbury Japanese Equity Fund between June 2000 and January 2004. He was previously a Director of Perpetual plc where he was Head of the Far Eastern Investment Department and managed the Perpetual Far Eastern Growth and Perpetual Japanese Growth funds. Scott has been an associate of the CFA society of the UK since 1979. He holds degrees from the universities of Yale and Cambridge.

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 an ISA, Lifetime ISA, SIPP or Fund & Share Account