Schroders and DWS benefit from focus on better quality companies

Sector focus: Japan

Portfolio concentration and good quality companies are the key to outperforming in Japan where the stock market is fairly inefficient

Only one fund, Schroder Tokyo, has been ranked in the 1st quartile in four out of the last five years, making returns of -16.07, compared to the sector average of -39.77. One reason why only one fund has achieved this ranking is because Japan has a fairly inefficient stock market, according to Andrew Rose, head of Japanese Equities at Schroder Investment Management, who has run Schroder Tokyo since April. But he adds: "If you are disciplined and do your own research you will be successful. It is a long-term and rigorous process but works in Japan over a longer period." Schroder Tokyo ...