Schroders Japan active value fund is a unit trust aimed at experienced investors who are looking to broaden their portfolio and who want exposure to Japanese equities.
Schroders already has four Japanese funds, ranging from smaller companies to emerging ones. Japan active value will differ from these by aiming for growth by investing is a wide range of Japanese companies that are currently undervalued, in the hope that the share price of these companies will later rise to reflect how valuable they really are.
To do this the fund will benchmark the Salomon Barney Broad Market Japan Value Index, which includes companies such as NEC, Fujitsu and Mitsubishi.
The Japanese economy is continuing its recovery from a prolonged recession and is seeing a great deal of growth. Undervalued companies will therefore benefit from this recovery.
According to Standard & Poors the Schroder Japanese enterprise fund is ranked 21 out of 69 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to October 30, 2000.