FTF Martin Currie Japan Equity X

Investment Process

Stock selection arises from extensive research undertaken on potential holdings. This will include meeting company management, customers and competitors. Stocks are held strategically over a long period of time and the portfolio tends to be concentrated with a high weight given to the top ten holdings. On a long term view the fund manager believes that Japan is experiencing cultural and social change with the market moving from being biased to manufacturing to one which is more service and consumer-orientated. The fund therefore aims to identify 'new Japan' companies, which have rapid and consistent earnings growth. These are companies which have grown by a minimum of 20% pa over at least two years and are predicted to grow by at least this level in the future. The fund has no exposure to the well known Japanese manufacturers or banks. Instead the portfolio is focused primarily in service, retail and wholesale stocks that are benefiting from consumers' increasing use of the internet. Another theme in the portfolio is healthcare, which aims to take advantage of the unfavourable demographics in Japan.