By MARCEL PORCHERON 04/05/2006
This new launch IT is based on the £475m Melchior Japan OEIC and a domestic Japanese IT. With a target raising of £100m, the fund will invest mostly in mid and small cap companies, where average market cap is circa £2bln (quite a bit larger than the Legg Mason Japan and Prospect Japan around £400m-£500m, although this could change). The fund targets growing companies and mostly invests around longer term themes, although stocks like Resona can be purchased on trading opportunities.
Performance has been very good on the OEIC taking the fund to the top of its peer group last year. However, short term performance has not been so good, where the fund has exposure to high beta stocks like real estate which have been punished in recent market weakness.
This fund offers a slightly unusual approach, Nishizawa-san’s excellent record and a Japan based team with experienced analysts (more than at Prospect, Legg Mason and Atlantis), while the fund focuses on smaller and mid sized companies.
Awarded 3 stars.