Man GLG Japan CoreAlpha Equity I H GBP

A large cap value style fund with a concentrated portfolio

  • 9476.00p
    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.

  • 14206.00p
    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?

  • 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!

  • 0.75%
    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).

  • 1.11%
    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 27 May 2020, fund data last updated 26 January 2016

The fund aims to outperform the TOPIX index by investing mainly in large cap Japanese companies. Stephen Harker, Head of the CoreAlpha team, has a distinct 'value' style, i.e. he invests in companies that are trading below their 'correct' valuation, rather than companies with high rates of growth. The portfolio can take aggressive sector and stock positions relative to the index and as a result the fund tends to be one of the more volatile in the sector. However Harker's long term track record justifies his approach. This is the currency hedged version of the fund.

Fund summary

Sector Japan
Structure OFFSHORE FUND
Launched March, 2010
Size £974m
Yield 0.00%
Charging basis Capital
Dividends paid 31 Mar

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.11%

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Investment process

The CoreAlpha team are based in York but visit Japan regularly. Harker leads the team and his style style is actually quite simple, founded as it is on his significant experience in Japanese equities and a keen study of history. The fund's process is based on the belief that large cap value stocks will outperform over the long term. The CoreAlpha managers believe that there is significant mean reversion in stock markets generally and in Japan particularly. Typically the managers therefore focus on what they consider to be valuation anomalies rather than companies with high growth rates. The preferred valuation methodology is Price to Book which compares the company's market capitalisation to its assets, which has traditionally been a potent metric in Japan. The managers conduct balance sheet analysis to ensure that the companies are financially secure.

Manager research

Average monthly relative returns

  • 15/16 -0.58%
  • 16/17 0.91%
  • 17/18 -0.10%
  • 18/19 -0.27%
  • 19/20 -1.54%

Bestinvest MRI

  • 3 years -0.64%
  • 5 years -0.31%
  • Career 0.60%
  • 3 years 5.20%
  • 5 years 18.90%
  • Career 100.00%

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

Stephen Harker / Neil Edwards / Jeffrey Atherton

Harker is the Head of Japanese Equities and leads the CoreAlpha team, who in 2010 were bought by Man Group. In 1994, he joined TCW, which became part of Société Générale (SGAM) in 2001 and was subsequently acquired by GLG in 2009. He started his investment career in 1983 at Prudential Portfolio Managers. He holds a BA in Mathematics and Economics from Warwick University and an MA in Economics of Finance from Sheffield University. Edwards is a Senior Portfolio Manager in the CoreAlpha team. He joined the Japanese equity team at SGAM in 2005. He has a BA in Economics and an MA in Economics of Money and Finance from Sheffield University. Atherton is a Senior Portfolio Manager in the CoreAlpha team. He joined the team in 2011 and has previously worked at Stratton Street Capital, Insight Investment, SGAM, TCW and Equitable Life. He started his career at Sun Life of Canada in 1987 and he has a BA in Economics from Sheffield University.

Track record

Stephen Harker / Neil Edwards / Jeffrey Atherton has 25.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.6%. During the worst period of relative performance (from May 1999 - February 2000) there was a decline of 33% relative to the index. The worst absolute loss has been 39%. 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 -39.00% (April 1991 - July 1992)
Relative -33.00% (May 1999 - February 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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Portfolio

The portfolio will usually comprise between 40 to 60 holdings. The maximum weight in any one stock holding is 10% and it is unlikely that a position will be less than 0.5%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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