View more on these topics

Hot Topix from Jupiter

Jupiter Asset Management has established the Jupiter Japan Income fund, a unit trust that will aim for income and growth by investing in Japanese equities.

The fund is targeting a yield of around 30 per cent above the Topix index yield,. This is likely to be around 2 per cent in the first year. As well as investing in Japanese companies, it can also invest in companies listed elsewhere that derive a large part of their business from Japan.

The fund will be managed by Simon Somerville who joined Jupiter in January 2005. Prior to that he was a director, partner and fund manager at Cazenove Fund Management where he spent 14 years. He has managed Jupiters Far Eastern Fund since February 2005.

Somerville believes now is a good time for this fund because Japan is at the beginning of a sustainable recovery underpinned by the reforms of Prime Minister Koizumi rather than exports.

Koizumi is now at the start of a third time in power following an election which was called in response to his failure to privatise the Japanese postal service. Jupiter regards his landslide election victory as easing the way for further reform

Reform has already benefited Japanese companies, which have reduced their debt, increased profits and are in a better position to make dividend payments to shareholders. Valuations are also relatively low, providing investors with good opportunities. Other positive factors include increasing employment levels and high consumer confidence.

However, a possible slowdown in Japan’s two major export markets, China and the US, could have a negative effect over the long term. Some IFAs may feel the UK is a better bet for income, especially those who have seen expectations of a Japanese recovery come and go over the last decade.

Recommended

Happier returns

I, like many directly regulated IFAs, may have recently had to complete electronically The Retail Mediation Activities Return and returned it, by a predetermined date, online to the FSA. I share the views of many of my IFA colleagues that the task was indeed daunting and caused some of us sleepless nights. However, I would […]

AMI calls for probe into cost of loan regulation

The Association of Mortgage Intermediaries has pitched into the debate on the cost of mortgage regulation, demanding that the FSA carries out a thorough assessment of the regulatory impact on the market. Director Chris Cummings makes his comments in a Council of Mortgage Lenders’ report which puts the one- off cost of mortgage regulation at […]

Matrix doubles up on foresight

Matrix Money Management is raising up to 24m each for the Foresight 3 and Foresight 4 venture capital trusts which aim for growth by investing in unquoted technology-based companies in the UK.

Moneynet and Lifesearch add warnings

Moneynet and Lifesearch have responded to the Money Marketing protection campaign by adding pre-sales health warnings to their websites. The warnings, the central aim of the No Advice, No Protection campaign, alert consumers to the hazards of buying protection products on an execution-only basis. They also point out that buying protection policies on a direct […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment