Jane’s portfolio is based on the view that world economic growth is good, despite negative news coming out of the US and UK.
He says basic indicators for global growth are positive and resource-intensive growth in China and India is occurring at the same time as Western countries are renewing their infrastructure. This view has led him to anticipate that the best equity returns will come from Asia and Latin America.
Some managers have given up on Japan to focus on regions where they see better opportunities but Jane’s investment strategy has led him to drill down further to focus on bigger value stocks in Japan. He is holding the SG Japan core alpha fund to gain exposure to this part of the market.
Rather than making a simple geographical decision to invest in Japan, Jane decided that as the region has a low correlation to other markets, it was best to look at which parts of the Japanese market to buy. He found that bigger value stocks had performed well and needed to find the most efficient way to access them. This led him to invest in the SG fund.
Jane says: “The fund has returned 7 per cent and very few things could have given us that return. Our investment process means we do not look at Japan versus Europe. We look at what is working, whether that is resources, value, growth, big companies or small caps.”