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 2016-2018. Seeks out-of-favour companies

This fund scooped the Best Japan Fund title in the Money Observer 2017 awards. Launched in 1984, it has officially been managed by Johan Du Preez since 2015.

The investment approach that he follows tends to be contrarian in nature. Du Preez is looking for companies whose share price he believes does not reflect their sustainable earnings over the long term.

Du Preez thinks stocks can often be mispriced because they are out of fashion, even if the company has strong fundamentals such as a healthy balance sheet and sustainable earnings. He says behaviour biases such as fear or greed often stop investors from making rational judgments. His process frequently leads him to out-of-favour companies.

The manager says he uses disciplined analysis of the fundamentals of a stock to make sure he has a high conviction in the companies he backs ヨ at the end of 2017 there were just 38 stocks in the portfolio.

With a strong smaller companies focus, Du Preez has at least 80 per cent of the fund in the businesses that make up the bottom third of all publicly listed companies in Japan by market capitalisation.

He believes the changes occurring in Japan today are not cyclical but structural, and offer sustainable returns over the long term for investors who are not afraid to sail into the headwinds.

He says cost reduction, more competitive exporters, improved corporate governance and profitability have resulted in fertile ground for stockpickers like him.<\p>

3 Year Performance
Fund Performance59.9%
Average of Rated Funds Group76.4%
Sector Performance82.8%
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 01/09/2015
  • Johan Du Preezsince 01/09/2015
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
12.3%
1 Year rank in sector
3/3
Sector
UT Japanese Smaller Companies
Yield
0.8%
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.
0.93%
Fund size
£271m (£245m 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.
120
Mid price
2942.05
Top in this sector
Fund name1 Year
Baillie Gifford Japnse Sm Cos34.7%
Invesco Perp Japanese Sm Cos31.5%
M&G Japan Smaller Cos12.3%
...more in UT Japanese Smaller Companies

Performance snapshot

Holdings snapshot

  • Japan99.5%
    Money Market0.5%
  • Financials23.2%
    Industrials21.9%
    Consumer Goods18.9%
    Consumer Services16.4%
    Basic Materials10.1%
  • Japanese Equities99.5%
    Money Market0.5%

Fund also available on these pension platforms:

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund3%-2.5%0.5%12.3%59.9%127.8%
Sector-2.2%-1.9%7%26.1%82.8%132.6%
Rank within sector1 / 32 / 33 / 33 / 33 / 32 / 3
Quartile
Calendar performance
 YTD - 20182017201620152014
Fund-2.5%19.1%41.8%16.9%10.9%
Sector0.2%31.5%37.3%16.9%1.9%
Rank within sector3 / 33 / 31 / 32 / 31 / 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.
3.28
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.
0.71
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.
1.12
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%.
11.82
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.
8.21
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.
-0.24
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.
0.6
Price movement
52 week high3152.66
52 week low2600.44
Current bid price-
Current offer price-
Current mid price2942.05
Region
1Japan99.46%
2Money Market0.54%
Industry sector
1Financials23.2%
2Industrials21.9%
3Consumer Goods18.9%
4Consumer Services16.4%
5Basic Materials10.1%
6Technology9.3%
7Money Market0.2%
Asset type
1Japanese Equities99.5%
2Money Market0.5%
Individual holdings
1MAZDA MOTOR CORP4.6%
2CREDIT SAISON CO4.1%
3OKI ELECTRIC INDUSTRY CO3.9%
4IBJ LEASING CO LTD3.7%
5DOWA HOLDINGS CO LTD3.6%
6IIDA GROUP HLDGS CO LTD3.6%
7MITSUI O.S.K.LINES3.4%
8LEOPALACE 213.3%
9SANKYO TATEYAMA INC3.3%
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 Lothian01/09/2015John 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 Preez01/09/2015Johan 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)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price32.5703
CurrencyEUR
Price updated19/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMO69
M&G Japan Smaller Companies A Acc GBP
Initial charge-
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price602.36
CurrencyGBX
Price updated19/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMA01
M&G Japan Smaller Companies A Acc USD
Initial charge5.25%
Annual charge1.5%
Min single investment£1,000
Min regular saving£75
Available in ISANo
Ongoing charge (OCF)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price15.4585
CurrencyUSD
Price updated19/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMRUD
M&G Japan Smaller Companies A Inc GBP
Initial charge-
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price562.41
CurrencyGBX
Price updated19/04/2018
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)0.93%
Total expense ratio (TER)0.93%
Bid price-
Offer price-
Mid price36.775
CurrencyEUR
Price updated19/04/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMO85
M&G Japan Smaller Companies C Acc USD
Initial charge3.25%
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 price15.7531
CurrencyUSD
Price updated19/04/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMRUE
M&G Japan Smaller Companies I Acc GBP
Initial charge-
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 price2942.05
CurrencyGBX
Price updated19/04/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code0ZEY
M&G Japan Smaller Companies I Inc GBP
Initial charge-
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 price2784.85
CurrencyGBX
Price updated19/04/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code0ZEZ
M&G Japan Smaller Companies R Acc GBP
Initial charge-
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 price289.96
CurrencyGBX
Price updated19/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi code0ZF0
M&G Japan Smaller Companies R Inc GBP
Initial charge-
Annual charge1%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.18%
Total expense ratio (TER)1.18%
Bid price-
Offer price-
Mid price277.25
CurrencyGBX
Price updated19/04/2018
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)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price597.8
CurrencyGBX
Price updated19/04/2018
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)1.68%
Total expense ratio (TER)1.68%
Bid price-
Offer price-
Mid price558.94
CurrencyGBX
Price updated19/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeMW98
Data provided by

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