AXA Framlington Japan Fund

Contrary to the view of Neptune her view is that there are many good companies in Japan and these tend to be in the Small and Mid-Cap space.

In my previous update we looked at Neptune Japan, and the unique approach the manager takes to investing. The challenge for investors which we identified was the Yen depreciating and how this might mean returns are limited without a hedge.

We are also aware that although the focus of the fund is large cap multinationals the volatility is at the high end and this may not appeal to all investors. We suggested a blend and one fund we use is the GLG, however there are concerns we have with the fund. Firstly for the second time the managers have soft closed the fund to new money, secondly the managers will not discuss the impact of yen depreciation on the fund and thirdly similar to Neptune it plays in the large cap space.

We have recently met Chisako Hardie who is the manager of the AXA Framlington Japan Fund and there are a number of reasons why this might be an interesting blend. Firstly performance, the performance over 1 and 3 years has significantly outperformed GLG and over five years it has outperformed Neptune, over 12 months it has underperformed Neptune. Secondly volatility, the performance has been delivered with volatility close to the index at 12.50% which is significantly lower than Neptune and lower than GLG. Thirdly the investment is different to both GLG and Neptune in that the focus is multi cap with a bias to small and mid-cap.

The meeting with the manager provided an alternative insight to Japan and how to achieve long term returns.

Fund Facts Morningstar

Notes

Please note...

Shininglights.co.uk is not regulated by the FCA. The information is purely a guide and it is the responsibility of the investor to carry out their own research before making any final decisions. We will ensure that the information is as accurate as possible but we cannot be held accountable for any errors or omissions. No products are sold on this site, nor do we endorse any particular product or investment.

Where there are links to third party sites this is not an endorsement of that site, and we cannot be held responsible for the accuracy of the information on that site.

Where there is reference to performance you should note that past performance is purely a guide and investments can fall as well as rise.

The information on the site belongs to shininglights.co.uk and cannot be replicated or copied without our permission.