Fund Objective

There is no fund objective available from this fund manager.

View on Past Performance

The FTSE World Japan Index produced a total return of +7.3% in sterling terms during the quarter. The Fund was positioned with underweights in Healthcare and Utilities, and overweights in Materials and Information Technology. IT exposure was reduced during the period as the sector has performed well and we expect technology demand to remain flat this year. Holdings in Citizen Watch and Murata were sold and Rohm decreased as shipments of AV components are deteriorating.

Future Expectations

Although the outlook for retail is fairly negative, we have identified a number of turnaround stories in the Consumer Discretionary sector. Although market sentiment is much more positive, the economic fundamentals haven't much changed - domestic demand data is flat whilst exports are falling in line with US imports, as US consumer spending remains slow and reform continues to stall.

Fund Details