Jersey fund to focus on Japanese equity growth after review shows demand from investors

News - Funds

Monday, 14 December 2009 11:16

Ashburton, the Jersey-based active investment manager, has refocused its Asia Pacific Equity Fund to concentrate solely on equity growth in Japan following a strategic review.

‘Over the last few years it has been easy to ignore Japan as an investment destination for the higher growth areas such as China and India. It is our belief, however, that Japan is likely to surprise positively in the future and investors should not disregard this opportunity,’ explained Jonathan Schiessl, who has successfully managed the company’s Asia Pacific Equity Fund for 10 years, now re-named as the Japan Equity Fund.

‘We expect over time that macro economic improvements should contribute to a virtuous circle for Japanese equities,’ he added.
According to Ashburton, Japan is well placed to continue to benefit from the high growth economies in the rest of Asia. Additionally, the election of the Democratic Party of Japan revealed the electorate has provided a strong mandate for change, and the expectation of a more coherent policy framework which will focus emphasis onto the domestic economy and away from exports.

‘This long overdue change should result in significant opportunities for investors. Japan has a plethora of companies that will benefit directly and indirectly from these changes. They are also well positioned to profit from the environmental challenges facing the globe. By changing the Fund’s mandate to that of a Japan only offering, we can provide shareholders access to these opportunities using an investment style which we feel is particularly suitable to this market,’ said Schiessl.

‘The Ashburton stock selection process uses both qualitative and quantitative assessments, with the key tenet being value. We overlay these fundamental disciplines with a thematic approach at sector and industry level. We invest in companies of substance and financial strength, with capacity to expand and grow under proven management. While we use benchmarks to monitor our performance, we are not slaves to stock market indices and are prepared to take active and large positions away from the norm,’ he added.

Since the inception of the Asia Pacific Equity Fund in January 1997, investments in Japanese companies had always constituted a large and important part of the Fund. The previous mandate of the Asia Pacific Equity Fund was to invest in securities listed on the stock markets of Asia, Australia and the Pacific basin, and the investment methodology that Ashburton's investment managers employed had been particularly successful in Japan.

Following a strategic review and feedback from Ashburton’s clients that they would prefer to invest in a fund with a more focused mandate, the Fund’s investment objective and name have been adjusted to concentrate solely on Japan.