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Neptune Japan Opportunities fund

1st August 2013 Print

Andy Parsons, head of investment research at The Share Centre, considers a region of the world all too often seen as off the radar, but which in 2013 has risen to prominence.

"The Neptune Japan Opportunities fund is an ideal way of investing within the region, whilst placing the decision making firmly at the hands of a manager with a proven track record.  Managed by Chris Taylor, the fund aims to achieve consistent capital growth by investing in a concentrated portfolio of approximately 40 - 60 Japanese stocks. 
 
"The Neptune investment approach is led by cohesive and team driven active management, wherein fund managers combine their roles with global sector analysis. There is no fixed style in so much as it is neither top down or bottom up, nor growth or value driven selection. The portfolio is constructed on a stock by stock selection basis, formulated from the proprietary global sector research and valuation models with the emphasis being placed on trends and dominant leading companies.
 
"Historically, the region has flattered to deceive with many false dawns mostly due to minimal economic growth, non-existent inflation and a currency that had remained strong. However, in late 2012 there were a number of significant developments that took place worthy of note.
 
"December 2012, the Liberal Democratic Party won the general election; ‘promising' increased fiscal stimulus, aided infrastructure spending, and allowing the Bank of Japan to determine more growth focused policies, particularly around inflation with a target of 2%.  All of these measures have led to what has become known as ‘Abenomics'.
 
"The announcements and measures outlined back in December 2012 have been further aided by the most recent upper house elections in July, in which the Prime Minister's ruling coalition party won a majority. Whether all of the measures announced to date will work remains to be seen.  
 
"The Neptune Japan Opportunities fund is ideal for those investors wishing to add or increase portfolio exposure to this region; offering a fund focussing on companies which dominate their sectors and whose earnings are driven by global sales. 
 
"In short, investing in Japan is not for the feint hearted and should definitely be viewed with a longer term time horizon."