Manager Simon Somerville plans to employ a Garp strategy, with 40-50 positions and a small-mid cap bias
Jupiter believes Japan is showing ideal valuations versus its Asian counterparts as it plans to launch its Japan Select Sicav next month.
The fund, managed by Simon Somerville, 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.
Somerville says he will hold around 90% of the positions already held in Japan Income, with a smaller and mid-cap bias.
He will employ a growth at a reasonable price (Garp) strategy, with between 40 and 55 positions.
Though the fund also has the flexibility to invest in government bonds, the manager does not expect this will be taken up actively.
Japan Select is one of eight sub-funds of the group's Luxembourg-domiciled Jupiter Global vehicle.
Somerville also runs Japan Income, which has been top-quartile over one and three years since it launched in September 2005.
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 more stable, and has not suffered a financial crisis as other markets have. We have probably seen the worst of the poor economic and earnings newsflow.
While the fund has the ability to hedge against sterling, the manager has not because he believes investors can hedge currency movements themselves.
"We have used this in the past, and while it can increase performance, it will also introduce greater risk. If it works you become a hero, whereas if it does not, you can look pretty stupid," he says.
Benchmarked against the Topix, the fund 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.
