AXA Framlington Japan Fund Z INC

Japanese Equities

Rated Fund 2017-20. Takes advantage of long-term growth trends  

AXA Framlington Japan can invest in Japanese companies of any size but has a bias towards small companies, where almost 40% of assets were invested at the end of 2019. A further 25% is in medium-sized companies. It has been managed since 2010 by Chisako Hardie, who was born and educated in Japan but has been living in the UK for most of her adult life. She has spent most of her near 30-year career focused on smaller companies.

In explaining her positive outlook on the Japanese market over the medium-to-long term, she says: “Many companies need to invest in automation and robotics to improve productivity, especially in a business environment where the labour shortage is increasingly becoming an issue. This works positively for wages, which will in turn stimulate consumption.”  Japanese stocks are trading at “extremely low” valuations and offer long-term investors “great opportunities”, she adds.

Hardie considers macroeconomic factors to identify long-term growth trends and combines these with research into individual firms to find those she believes can deliver the best returns. She undertakes a rigorous examination of their financial and management strengths, and is also able to draw on the knowledge of Axa’s global sector specialists.

Smaller Japanese firms are not well-researched, so company meetings, visits and industry contacts are central to validating her strategy.

The portfolio typically holds 100 stocks and has a low turnover. Stocks will be sold if a company appears overvalued or Hardie loses faith in its management. A change in the competitive environment and the identification of a better opportunity are among other typical reasons for selling.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
AXA Framlington Japan Fund Z INC
Manager
AXA Investment Managers UK Ltd
Type
Unit Trust
ISIN
GB00BRJZVR88
Sector
Japan
Launched
19/01/2015
OCF
0.84 %
Risk Rating
4
3 Year Sharpe
0.36
3 Year Alpha
0.13
Yield
0.8 %
Benchmark
FTSE Japan TR GBP
The aim of this Fund is to provide long-term capital growth. The Fund invests in shares of Japanese listed companies which the Manager believes will provide above-average returns. The Fund invests in companies of any size. The Manager selects shares based upon analysis of a company’s financial status, quality of its management, expected profitability and prospects for growth.
Holding %
SoftBank Group Corp 1.97 %
Lasertec Corp 1.94 %
Kaga Electronics Co Ltd 1.80 %
Nihon M&A Center Inc 1.67 %
Shift Inc 1.56 %
M3 Inc 1.53 %
SBI Holdings Inc 1.49 %
Wacom Co Ltd 1.42 %
Vector Inc 1.40 %
Bengo4.com Inc 1.37 %
Region %
Japan 100.00 %
Sector %
Technology 25.30 %
Industrials 21.02 %
Healthcare 17.12 %
Consumer Cyclical 10.33 %
Financial Services 8.60 %
Basic materials 5.87 %
Communication Services 5.50 %
Consumer Defensive 5.23 %
Name
AXA Investment Managers UK Ltd
Address
EC1A 7NX, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Chisako Hardie
Joined 04/16/2010

Chisako joined Scottish Widows Investment Partnership in September 2000 as an Investment Director within Japanese Equities. She has gained over ten years experience through roles within Japanese Equities with employers including Martin Currie Investment Management Ltd (1996-2000), Scottish Life Assurance Company (1994-1996) and Scottish Provident (1991-1994). Chisako holds a BA in Sociology from Keio University, Tokyo and is a Chartered Member of Securities Analysts Association of Japan. Chisako holds a BA in Sociology from Keio University,Tokyo, and is also a Chartered Member of the Securities Analysts Association of Japan.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.