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JO Hambro adds second Japan fund to range

JO Hambro Capital Management has launched a second Japanese offering under the management of Scott McGlashan and Ruth Nash.

The Japan select fund will target high yielding returns from large-cap in the Topix 100.

JO Hambro says the launch has been made to capitalise on the growing use of dividend to signal business confidence from listed companies in Japan.

The portfolio will include both the 20 highest yielding stocks and the 20 with the fastest growing dividend semi-annually.

The select fund is expected to have a capacity of £2bn, a significant increase on the £200m figure slated for the current Japan fund which launched in 2004.

McGlashan says: “Dividends by Japanese companies grew by 14 per cent last year and have been growing at a double digit rate since 2003. In the ten years prior to that, it was common for them to cut dividends. With the breakdown of the old cross-shareholding system, Japanese companies have now realised that they can no longer afford to ignore shareholders.

“Having repaid debt over the past 15 years, corporate Japan is in rude health and we expect payout ratios to continue to rise. The emerging dividend culture will be the foundation for the next Japanese bull market and this fund is positioned to benefit from this exciting change.”

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