Fact sheet: M&G Japan Smaller Companies

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
JAPANESE EQUITIES
Sector
UT Japanese Smaller Companies
Fund type
OEIC
Primary aim
GROWTH
Why Money Observer Rates M&G Japan Smaller Companies

Rated Fund 2016-2017. Stockpicker who looks for out-of-favour companies

This fund invests predominantly - at least 80 per cent - in Japanese companies that are in the bottom third of all publicly listed equity in Japan in terms of size. It typically holds between 30 and 50 stocks.

Johan du Preez has been the fund's official manager since 2015, but in fact he was part of the team running it previously on an outsourced basis at Eastspring Investment, a sister company of Prudential, which owns M&G.

The investment approach that du Preez follows tends to be contrarian in nature. His stockpicking approach appears well-suited to the Japanese market, which he believes has undergone fundamental change in recent years.

He looks for shares in companies that he believes are on cheap valuations relative to the returns he expects these businesses are likely to generate over the medium to long-term. These companies are quite often out of favour with the market for one reason or another.

Du Preez aims to exploit the behavioural biases that he says are evident in Japan's equity markets whereby human emotions, such as fear or greed, prevent investors from always assessing investments rationally. As a result shares in companies become mis-priced because investors buy and sell regardless of inherent value characteristics.

He believes the changes occurring in Japan today are not cyclical, but structural and offer sustainable attractive returns for those investors who can sail into the headwinds buffeting other investors' emotions.

3 Year Performance
Fund Performance97.4%
Average of Rated Funds Group103.1%
Sector Performance96.8%
Fund information
Fund name
M&G Japan Smaller Companies I Acc GBP
Fund manager company
M&G UK
Fund type
OEIC
Fund managers
  • John Lothiansince 31/08/2015
  • Johan Du Preezsince 31/08/2015
Accolades
Fund objective
The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing at least 80% of the fund in the shares of smaller Japanese companies (companies that make up the bottom third of all publicly listed companies in Japan, in terms of stockmarket value). Income is not a consideration when choosing investments. Stocks are selected from across a wide range of industries. The fund manager focuses on stocks where he believes the share price is not fully valuing the company's sustainable earnings over the medium to long term. The portfolio typically holds between 30 and 50 stocks.
Benchmark
  • Russell Nomura Mid-Small Index
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
45.5%
1 Year rank in sector
1/3
Sector
UT Japanese Smaller Companies
Yield
1%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.94%
Fund size
£217m (£104m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
118
Mid price
2658.31
Top in this sector
Fund name1 Year
M&G Japan Smaller Cos45.5%
Baillie Gifford Japnse Sm Cos27.6%
Invesco Perp Japanese Sm Cos26%
...more in UT Japanese Smaller Companies

Performance snapshot

Holdings snapshot

  • Japan98.2%
    Money Market1.8%
  • Industrials22.3%
    Consumer Goods21.2%
    Financials18.5%
    Consumer Services14%
    Technology12.6%
  • Japanese Equities98.2%
    Money Market1.8%

Fund also available on these pension platforms:

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-0.9%-2.1%9.3%45.5%97.4%174.6%
Sector3.9%3.1%12%33.7%96.8%167.6%
Rank within sector3 / 33 / 33 / 31 / 32 / 32 / 3
Quartile
Calendar performance
 YTD - 20172016201520142013
Fund4.9%41.8%16.9%10.9%32.5%
Sector10%37.3%16.9%1.9%41.4%
Rank within sector3 / 31 / 32 / 31 / 33 / 3
Quartile
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
8.42
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.75
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.88
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
12.05
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
7.48
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.4
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.67
Price movement
52 week high2817.49
52 week low1818.24
Current bid price-
Current offer price-
Current mid price2658.31
Region
1Japan98.2%
2Money Market1.8%
Industry sector
1Industrials22.25%
2Consumer Goods21.24%
3Financials18.54%
4Consumer Services13.99%
5Technology12.62%
6Basic Materials9.55%
7Money Market1.8%
Asset type
1Japanese Equities98.2%
2Money Market1.8%
Individual holdings
1WACOM CO4.48%
2JSR CORP4.29%
3NIKON CORP4.02%
4OKI ELECTRIC INDUSTRY CO4.02%
5IBJ LEASING CO LTD3.84%
6UNITED ARROWS3.53%
7SANKYO TATEYAMA INC3.46%
8MITSUI O.S.K.LINES3.45%
9EBARA CORP3.34%
Management
Fund manager group
M&G
Fund manager company
M&G UK
Fund type
OEIC
Fund objective
The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing at least 80% of the fund in the shares of smaller Japanese companies (companies that make up the bottom third of all publicly listed companies in Japan, in terms of stockmarket value). Income is not a consideration when choosing investments. Stocks are selected from across a wide range of industries. The fund manager focuses on stocks where he believes the share price is not fully valuing the company's sustainable earnings over the medium to long term. The portfolio typically holds between 30 and 50 stocks.
Benchmark
  • Russell Nomura Mid-Small Index
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
John Lothian31/08/2015John Lothian joined M&G in March 2011 as a specialist on Japanese equities. His roles have included senior analyst on the M&G American Fund and M&G Global Leaders Fund, as well as senior research analyst covering global consumer, healthcare, and technology sectors. He was appointed deputy manager of the M&G Japan and M&G Japan Smaller Companies funds in September 2015. Prior to M&G, John co-managed a Japanese equity fund at Occam Asset Management. Before that, he covered Japanese stocks at Lazard Asset Management in London. John started his career at Lehman Brothers in Tokyo. He has an MBA from Columbia Business School, an MA in international relations from The Johns Hopkins University School of Advanced International Studies (SAIS), and a BA in Greek and Latin from The Catholic University of America. John is fluent in Japanese and is a CFA charterholder.
Johan Du Preez31/08/2015Johan Du Preez joined Prudential Portfolio Managers (South Africa) in 1998 and then moved to the Japan Equity team in 2004. Before joining Prudential, Johan worked at Momentum Employee Benefits as an Actuarial Consultant. Prior to that, he worked at Crusader Life, South Africa. Johan graduated from the University of Witwatersrand, and holds a Bachelor of Economics. He also holds a Masters of Commerce from the University of Cape Town and he is a Chartered Financial Analyst.
Compliance
Transparent for Austrian Tax, Transparent for Swiss Tax, IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
Austria, Belgium, Switzerland, Germany, Denmark, Spain, Finland, France, United Kingdom, Gulf Cooperation Council, Ireland, Italy, Republic Of Korea, Luxembourg, Netherlands, Norway, Sweden, Taiwan - Province Of China
M&G Japan Smaller Companies A Acc EUR
Initial charge5.25%
Annual charge1.5%
Min single investment£1,000
Min regular saving£75
Available in ISANo
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.69%
Bid price-
Offer price-
Mid price29.7786
CurrencyEUR
Price updated25/05/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMO69
M&G Japan Smaller Companies A Acc GBP
Initial charge4%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.69%
Bid price-
Offer price-
Mid price547.96
CurrencyGBX
Price updated25/05/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMA01
M&G Japan Smaller Companies A Acc USD
Initial charge4%
Annual charge1.5%
Min single investment£1,000
Min regular saving£75
Available in ISANo
Ongoing charge (OCF)1.72%
Total expense ratio (TER)1.72%
Bid price-
Offer price-
Mid price12.8181
CurrencyUSD
Price updated25/05/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMRUD
M&G Japan Smaller Companies A Inc GBP
Initial charge4%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.7%
Total expense ratio (TER)1.7%
Bid price-
Offer price-
Mid price520.08
CurrencyGBX
Price updated25/05/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeMA02
M&G Japan Smaller Companies C Acc EUR
Initial charge3.25%
Annual charge0.75%
Min single investment£500,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)0.94%
Total expense ratio (TER)0.94%
Bid price-
Offer price-
Mid price33.3965
CurrencyEUR
Price updated25/05/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMO85
M&G Japan Smaller Companies C Acc USD
Initial charge1.25%
Annual charge0.75%
Min single investment£500,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)0.93%
Total expense ratio (TER)0.93%
Bid price-
Offer price-
Mid price12.9745
CurrencyUSD
Price updated25/05/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMRUE
M&G Japan Smaller Companies I Acc GBP
Initial charge1%
Annual charge0.75%
Min single investment£500,000
Min regular saving£10,000
Available in ISAYes
Ongoing charge (OCF)0.94%
Total expense ratio (TER)0.94%
Bid price-
Offer price-
Mid price2658.31
CurrencyGBX
Price updated25/05/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code0ZEY
M&G Japan Smaller Companies I Inc GBP
Initial charge1%
Annual charge0.75%
Min single investment£500,000
Min regular saving£10,000
Available in ISAYes
Ongoing charge (OCF)0.93%
Total expense ratio (TER)0.93%
Bid price-
Offer price-
Mid price2557.74
CurrencyGBX
Price updated25/05/2017
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code0ZEZ
M&G Japan Smaller Companies R Acc GBP
Initial charge1%
Annual charge1%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.2%
Total expense ratio (TER)1.2%
Bid price-
Offer price-
Mid price262.6
CurrencyGBX
Price updated25/05/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi code0ZF0
M&G Japan Smaller Companies R Inc GBP
Initial charge1%
Annual charge1%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.19%
Total expense ratio (TER)1.19%
Bid price-
Offer price-
Mid price255.22
CurrencyGBX
Price updated25/05/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code0ZF1
M&G Japan Smaller Companies X Acc GBP
Initial charge-
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.69%
Bid price-
Offer price-
Mid price543.81
CurrencyGBX
Price updated25/05/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMW99
M&G Japan Smaller Companies X Inc GBP
Initial charge-
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.69%
Bid price-
Offer price-
Mid price516.88
CurrencyGBX
Price updated25/05/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeMW98
Data provided by

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