Jupiter Japan Income Fund

For investors this may suit those looking for a Japanese fund with a focus on the domestic side of Japan with the belief that this will benefit when the upside comes.

Over the last 18 months Japan has come onto the radar screen for many investors, with last year posting strong returns. However, much of those returns were lost where funds failed to use a currency hedge.

One of the crucial changes in the Japanese plan is deflating their currency and investors need to accept that if they want to benefit from a resurgent Japan then they either invest in a fund which has this hedge or accept some loss of returns by choosing a fund which doesn’t.

We have reviewed three Japanese Funds and favour Neptune Japan which has a hedge and use the GLG Japan CoreAlpha Strategy as a currency airbag.

In recent weeks we have met a number of income managers and it has become clear that many income funds are not as many investors perceive. They are not pure dividend producing funds but more akin to growth funds, targeting companies which have both growth potential alongside a sustainable growing dividend yield.

Some of these funds can punch their weight above even the best pure growth funds. The Jupiter Income Fund came onto our radar as the manager Simon Somerville is well respected and has a good track record. The fund doesn’t use a currency hedge but with the dividend yield it should provide downside protection as well as additional upside.

Fund Facts Morningstar

Notes

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