Invesco Japanese Smaller Companies (UK)

Run from Tokyo, relatively high volatility.

  • 101.26p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.74%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 08 April 2020, fund data last updated 20 August 2003

A specialist fund that invests in sectors of the Japanese market which are less researched. This creates investment opportunities, although this is a high risk approach. However, the fund benefits from the strength and depth of Invesco's large team in Tokyo. Should only be considered by experienced investors who want to benefit from "new Japan".

Fund summary

Sector Japanese Smaller Companies
Structure OEIC
Launched September, 1983
Size £43m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.74%

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Investment process

The fund aims to achieve capital growth through a portfolio of investments in smaller Japanese companies. Sector themes are identified and stocks are then selected on a bottom up basis. Those companies which can sustain growth rates of at least 10 to 15% per annum over the next three to five years are initially identified. Companies that are in control of their own destiny, are able to grow their business irrespective of economic conditions, and high return on equity are deemed as important characteristics. The portfolio is broken into "core holdings" which is about 60% of the fund, with the balance held in shorter term trading opportunities.

Manager research

Average monthly relative returns

  • 15/16 0.63%
  • 16/17 -0.02%
  • 17/18 1.05%
  • 18/19 -0.08%
  • 19/20 -0.86%

Bestinvest MRI

  • 3 years 0.04%
  • 5 years 0.15%
  • Career -0.01%
  • 3 years 59.10%
  • 5 years 67.40%
  • Career 62.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Osamu Tokuno

Osamu Tokuno worked alongside the previous manager (Kawada) for 3 years having started with INVESCO Japan in April 2000. He was previously senior FM at Japan Investment Trust Management Co, before which he worked from 1990 to 1998 in Japanese equity sales at Okasan Securities, based in Tokyo & London. He began his career as an investment analyst in 1988 with Okasan Economic Research. He has a BA from Ehime University and is a Chartered Member of the Security Analyst Association of Japan CMA.

Track record

Osamu Tokuno has 20 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from June 2004 - December 2012) there was a decline of 58% relative to the index. The worst absolute loss has been 60%.

Periods of worst performance

Absolute -60.00% (December 2005 - October 2008)
Relative -58.00% (June 2004 - December 2012)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 January 2020

6.05% Peptidream Inc
4.42% West Holdings Corp
4.24% Nextage Co Ltd
3.95% Riso Kyoiku
3.76% Fullcast Hldgs Co Ltd
3.62% Ain Hldgs Inc
3.48% Change Inc
3.41% Central Security Patrols Co
3.12% Optorun Co Ltd
3.03% Daiichi Sankyo Co Ltd
Source: Trustnet

Sector breakdown

Services 30.00%
Manufacturing 28.00%
Transport 15.00%
Trade 10.00%
Real Estate 6.00%
Construction 5.00%
Money Market 4.00%
Financials 3.00%

Portfolio

The fund will generally hold around 40 positions. Top 10 concentration is high with nearly 50% of fund assets invested in these stocks.

Key Investor Information

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