Jupiter is launching its Japan Select Sicav next month for Simon Somerville. The fund will focus o...
Jupiter is launching its Japan Select Sicav next month for Simon Somerville.
The fund will focus on Japan but will have the flexibility to invest up to 20% in other Asian countries such as Hong Kong, South Korea, Taiwan, Singapore and Malaysia.
Seeking long-term capital growth, it will also be able to invest in government bonds from across the region.
Japan Select is one of eight sub-funds of the group's Luxembourg-domiciled Jupiter Global vehicle.
Somerville also runs the Japan Income fund, which has been top-quartile over one and three years since it launched in September 2005.
Typically looking at mid and small caps, Somerville will employ a growth at a reasonable price (Garp) strategy, with between 40 and 55 stocks in the portfolio.
He says smaller companies in Japan are currently presenting more attractive valuations than their larger cap counterparts.
He adds the export sector has been seriously impacted by external factors and will continue to suffer.
"However, the domestic sector has been far more stable, and has not suffered a financial crisis as other major markets have. We have probably seen the worst of the poor economic and earnings news flow.
"This was highlighted in the April industrial production numbers, which rose at the fastest pace in 56 years, up 5.2% month on month; however this record looks likely to be beaten in May when production is expected to climb 8% from April," he says.
"In addition, while the news flow in the export sector has been dire in the near term, increased intra-regional trade will provide significant benefits and less reliance on the West in the long term. Trade with China, for example, is now greater than trade with the US, which offers significant opportunities."
Benchmarked against the Topix, it will offer dollar, sterling and euro share classes. Minimum investment is $1,000, £1,000 or €1,000. Fees will be 5% initial and 1.5% AMC.
