Fund Objective

The fund aims to provide long-term capital growth from a diversified portfolio of Japanese equities. Investment may be made in both large and small-sized companies.

View on Past Performance

Over the quarter, the fund underperformed its benchmark. A number of large positions in blue chip cyclical names, many of which ranked among the top contributors in the last quarter, fell sharply, as the spread of the global credit crisis clouded the outlook for the world's major economies. At the same time, a lack of exposure to defensive industries, which fared better amid the market turmoil, detracted further from performance.In contrast, stock selection among major banks proved rewarding and low relative weightings in the materials sector also paid off. Major detractors included imaging equipment maker Canon, auto parts manufacturer Stanley Electric and Dainippon Screen Manufacturing, a maker of semiconductor production equipment.A global recession and a sharp appreciation of the yen fuelled fears of earnings downgrades for these blue chip exporters. However, I continue to favour these companies, which are trading at compelling valuations for long-term returns.

Fund Details