Premier Asset Management’s multi-asset team is prepared to be patient in waiting for Japan to see sustained and significant growth.
Japanese equities recently boosted returns from the Premier multi-asset growth fund at a time when holdings in defensive UK equities were a drag on performance.
European structured products also struggled amid concerns about sovereign debt defaults on the Continent.
Investment director of pooled funds David Hambidge sees Japan as a classic value investment over the broader term. He increased the multi-asset growth fund’s Japan weighting towards the end of last year as he felt it was only a matter of time before the region played catch-up. The change was made possible by reducing exposure to convertible bond funds, as these are no longer the bargains they were during the global financial crisis.
Hambidge says: “Japan has been a complete basket case for all the time I have been in the industry. It is unloved and undervalued but that is good for us as you do not want to be in a crowded area where everyone runs for the exit at the same time. Japan is due to have sustainable and significant economic growth but we are prepared to be patient.”