Fund Objective

The objective of the Fund is to achieve long-term capital and income growth.

Future Expectations

Although Japanese equities have not been immune to the fi nancial crisis in the US, we believe they remain a relative safe haven from the global equity market turmoil, helped by the strong yen. Despite relatively small exposure to Western credit problems, Japanese equities have recently fallen to a fi ve-year low, making their valuations very attractive.The average dividend yield has risen above the 10-year government bond yield, which has now fallen below 1.5%, and this is sending a strong buying signal. Against this market environment, political changes expected in the next 12 months may provide a catalyst for a rally.The ruling Liberal Democratic Party (LDP) elected Taro Aso as its new leader with an overwhelming majority and as a result he became the country's new Prime Minister in September. As his popularity is relatively high, Aso is likely to call an early general election and if the LDP wins, there should be a more stable political environment than we have seen in recent years.

Fund Details