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SKANDIA JPM JAPAN PF - Fund overview

Bestinvest rating 3 stars


Overview of SKANDIA JPM JAPAN PF

This fund is benchmarked against the Topix index although fund manager David Mitchinson does not manage it in a very benchmark constrained way. Mitchinson seeks to invest in high quality growing companies, predominantly in the mid and small cap universe. This style leads him to specific sectors of the market and, given the cyclical nature of the Japanese equity market, the fund will experience periods of being in and out of favour.

Standard Initial Charge

0.00% 0.00%

Fund summary

Sector  –
Product type  PENSION FUND
Launched  May, 2002
Size  £2m
Yield 0.0%
Charging basis  –
Dividends paid  –
Bid price 75.00p

Fund Charges

Standard Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 4.94%
Annual management charge 1.70%
Total expense ratio 1.70%
Reduction in yield (10yr) 2.20%

Bestinvest says


The focus is on quality smaller companies that have good visibility on future earnings, the manager typically runs a high conviction portfolio of what he considers are future winners. The Japanese market is cyclical and growth companies such as those Mitchinson targets are not always rewarded as western investors might expect. Whilst this fund is by no means the most volatile small cap Japanese fund investors must be prepared to accept short term variations from the benchmark and volatility in search of longer term returns. Mitchinson has been investing in Japan since 2001 and is based in Hong Kong.

Portfolio

skandia jpm japan pf asset allocation illustration
Allocation Proportion
Equity 99%
High yield bonds
Quality bonds 0%
Property 0%
Commodities
Hedge
Fund cash 1%
skandia jpm japan pf equity geographic illustration
Allocation Proportion
UK 0%
Europe 0%
Nth America 0%
Japan 100%
Pacific 0%
Other Equity 0%
skandia jpm japan pf equity capitalisation illustration
Allocation Proportion
Large Caps 30%
Mid Caps 48%
Small Caps 22%

Investment process


The fund is essentially a stock picking fund where the manager seeks to identify companies with strong market shares in growing industries either in Japan or, typically, in emerging markets.
The fund will differ from the Topix weightings, to a reasonable extent and is likely to be more volatile this benchmark. Essentially investors are buying the managers ability to identify prominent trends and companies that are benefiting from this. Crucially, especially in Japan, is the fund manager's ability to identify company management that will drive shareholder value. Mitchinson will primarily use 'growth' metrics to identify investigable companies. Typically this will mean he focuses on revenue growth, price to earnings, EBIT and cash flow for company valuations. Although this is placed within the context of quality management.
Mitchinson has access to JPM's considerable resources in Japan and Emerging Markets. However the team in which he sits is autonomous to a degree, given that he originally worked for Jardine Fleming, a specialist Asian equity house which was bought by JPM in 2000.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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