fund

Rated

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LF Morant Wright Nippon Yield B

Japanese equity income fund with a multi-cap approach.

  • 332.15p
    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.

  • 441.00p
    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!

  • 1.00%
    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).

  • 1.15%
    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.

  • 3.10%
    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 15 January 2021, fund data last updated 15 May 2018

The fund aims to provide long-term income growth whilst preserving and growing its capital value though investment in a multi-cap portfolio of Japanese equities. Morant Wright is a dedicated Japanese fund management house with a strong value bias. The managers focus on identifying companies with strong balance sheets and/or business franchises that are trading at a discount to their assets and, as a result, the fund is generally quite defensively positioned.

Fund summary

Sector Japan
Structure OEIC
Launched August, 2010
Size £316m
Yield 3.10%
Charging basis Capital
Dividends paid Apr, Dec

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.15%

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Investment process

The team focus on Japanese companies which are well capitalised with strong balance sheets, and are trading at a discount to intrinsic value. Intrinsic value is normally defined as a discount to book (or asset value). The managers screen for companies that are cheap on this metric as well as searching for companies with low debt to equity and high interest cover. Their investible universe typically consists of 300 companies, which are followed closely as valuations change over time. Their valuation sensitivity means that they will avoid certain sectors which can be a headwind to performance at times. Their ultimate objective is to identify companies that offer the potential for significant growth over the long term. The fund does not carry an explicit yield guarantee but since launch it has comfortably exceeded the benchmark TOPIX index and has typically grown over time.

Morant Wright is a London-based boutique, established in 1999 and specialising in Japanese equities. Founders Ian Morant and Stephen Wright are very experienced managers with a consistent and long track record, and have built up a strong team around them. The team place a high importance on capital preservation and the fund tends to perform well in difficult stock market conditions, though it will typically lag strongly rising markets. The team are not constrained to the typical large companies, instead they explore further down the market capitalisation spectrum to find good investment opportunities.

Manager research

Average monthly relative returns

  • 16/17 0.34%
  • 17/18 0.24%
  • 18/19 -0.35%
  • 19/20 -0.30%
  • 20/21 -1.34%

Bestinvest MRI

  • 3 years -0.66%
  • 5 years -0.28%
  • Career 0.35%
  • 3 years 1.70%
  • 5 years 19.80%
  • Career 99.10%

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

Morant Wright Team

Stephen Morant jointly founded Morant Wright in 1999. Previously he was a partner at Cazenove & Co and was responsible for Japanese equities having joined them in 1978. Prior to this he worked as an accountant in both industry and private practice. Ian Wright jointly founded Morant Wright in 1999. Previously he was at F&C from 1981 and was head of their Japan Desk from 1993 to 1999. Prior to this he worked at Clerical Medical where he qualified as an Associate of the Institute of Actuaries, and at Buckmaster & Moore managing institutional funds. Richard Phillips joined in 2001. Previously he worked at Schroders, National Provident Institution and F&C. Andrew Millward joined in 2009. He investment career began at Henderson Global Investors in 1997 and he moved to their Japanese equity team in 2000. Denis Clough joined in 2010 from Schroders and managed Schroder Tokyo from 1985 for 19 years. Tom Mermagen joined in 2004 from Schroders where he was Head of Japanese Equity Research in Toyko.

Track record

Morant Wright Team has 21.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.35%. During the worst period of relative performance (from September 1999 - March 2000) there was a decline of 27% relative to the index. The worst absolute loss has been 29%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -29.00% (March 2006 - July 2008)
Relative -27.00% (September 1999 - March 2000)

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 October 2019

3.08% Sumitomo Electric Industries
3.02% Toyota Industries Corp
2.94% Toda Corp
2.92% Honda Motor Co
2.89% Canon Marketing Japan
2.83% Mitsubishi Ufj Financial Group
2.82% Sumitomo Mitsui Tr Hldgs Inc
2.76% Sumitomo Mitsui Financial Group Inc
2.71% Tokio Marine Hldgs Inc
2.7% Tokai Rika Co
Source: Trustnet

Sector breakdown

Building & Construction 21.00%
Transport Equipment 18.00%
Banks 12.00%
Basic Materials 9.00%
Financials 9.00%
Trade 8.00%
Machinery 6.00%
Other Metals 5.00%
Others 5.00%
Electronic & Electrical Equipment 3.00%

Portfolio

50-70 stock portfolio.

Constraints

Typically holdings are limited to 3% in a portfolio and no more than 1% of a company's free float

Key Investor Information - Income

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Key Investor Information - Accumulation

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