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Jupiter Japan Income I Hedged

Bestinvest LogoA multi-cap Japanese equity fund with an attractive yield.

PRICE (INC)

114.3p

PRICE (ACC)

-

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

1.04%

YIELD

2.3%

1 YEAR
1.57%

Prices as at 10 Aug 2022.

Fund commentary last updated 14 Mar 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to achieve long-term capital and income growth by investing mainly in Japanese companies. It seeks to provide a return higher than that of the TOPIX Index, which tracks domestic companies on the Tokyo Stock Exchange, over the long term. Managers Dan Carter and Mitesh Patel take a bottom-up approach to investing in high yielding, growing businesses with powerful competitive advantages. They want companies with the ability and willingness to grow dividends. The portfolio has a natural bias towards small and mid-cap growth companies with holdings including electronics group Sony and tyre maker Bridgestone.

Fund summary

SectorJapan
StructureUNIT TRUST
LaunchedJune 2010
Size£896m
Yield2.3%
Charging BasisCapital
Dividends paid31 Mar, 30 Sep

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure1.04%

Investment Process

From an investment universe of around 1,500 companies, the managers mainly use a bottom-up analysis approach on around 300 stocks to select the most appropriate holdings. They use a wide range of tools from financial modelling to company meetings as well as company market, value metric and ESG analysis. They seek companies offering both growth potential and high yields, splitting them into three distinct buckets – high yield with some growth, high growth with some yield and high growth with high yield. The team use financial stability, management quality, competitive advantage, barriers to entry, growth, and valuation as tests to find out whether companies have the ability to increase dividend payouts and the willingness to do so. In addition to bottom-up analysis, the management duo closely track and consider thematic trends in Japanese society and economy. This includes technological advancement in the sustainable energy and decarbonisation sectors and the need for digital transformation and more automation as Japan’s working age population declines. Indeed, Carter and Patel describe demographics as Japan’s ‘mother theme’. The fund maintains a concentrated portfolio of around 40 stocks. Nearly half the portfolio is classified as small-cap, defined as a market value of less than $15billion.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning