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JOCHM Japan goes below surface

JO HAMBRO CAPITAL MANAGEMENT

JOHCM JAPAN FUND

Type:
Oeic

Aim:
Growth by investing in Japanese equities

Minimum investment:
Lump sum £1,000

Investment split:
At least 25% in Japanese small caps, at least 50% in mid caps, remainder in large caps

Place of registration:
Dublin

Charges:
Initial up to 5%,
annual 1.25%

Commission:
Initial 3%,
renewal 0.5%

Tel: 020 7747 5678

The JOHCM Japan fund is a Dublin-domiciled Oeic that invests in between 40 and 60 Japanese stocks.

Ronald Blue & Co director David Flowers thinks Japan is an essential part of an asset allocation strategy and believes it makes sense to offer this fund. He says: “This is a fairly standard Oeic fund from a small investment house and it complements a narrow range of funds.”

Flowers points out that the fund manager, Scott McGlashan, has an outstanding track record investing in Japan and is worth following. He adds: “McGlashan does not intend to hold any of the top 100 Japanese stocks. JO Hambro&#39s fund managers are remunerated by a performance fee and ownership of the firm, hence one would expect high levels of motivation for McGlashan and his team.”

However, Flowers voices some concerns about the fund. He says: “One should note that this fund will be quite a lot more volatile than the index. Also, the fund is not cheap with a 5 per cent initial charge &#45 this is too high &#45 although the annual management charge is fair at 1.25 per cent. Investors need to be aware of the higher than average risk.”

Weighing up possible competitors for the fund Flowers says: “My personal favourite has been Schroder Tokyo, a long-term top performer. Recently Odey Japan has come up well and is likely to be a similar and hence more volatile performer.”

BROKER RATINGS:
Suitability to market: Good
Investment strategy: Good
Charges: Poor
Adviser remuneration: Average

Overall 7/10

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