Legg Mason IF Japan Equity Fund Class X Accumulation

Japanese Equities

Rated Fund 2013-19. Buys growth stories for the long term

This fund won Money Observer’s Best Smaller Japan Fund award in 2013 and 2014. It is run by Shiozumi Asset Management, whose founder, Hideo Shiozumi, has almost 50 years’ investment experience.

The fund seeks to exploit structural changes in Japan by identifying high growth companies with annual earnings growth of more than 20%, which are nevertheless attractively valued.

Shiozumi’s investment style is based around three key tenets that he has honed over his career. They include being focused on growth companies, having a high conviction portfolio that is far more concentrated than competitors and the index, and holding stocks for the truly long term.

He invests in companies across the market capitalisation spectrum that he believes have compelling earnings growth because of their positions as market leaders, and their ability to deliver profitability.

Shiozumi says finding growth stocks has become easier over the last decade as the economy has become more service-oriented, while the internet as a sales channel has created many new businesses. In addition, the government is encouraging growth champions in healthcare, medical care and robotics as it tackles the effects of an ageing society.

The fund has always been concentrated, with between 30 and 60 holdings (45 at the end of 2018). It has a bias towards small and medium-sized companies operating in profitable niches – this is where Shiozumi thinks the potential for share price expansion is greatest. The fund has a low turnover. Many companies have been held for over five years, some for more than 10. Investing is, in Shiozumi’s view, all about patience.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Legg Mason IF Japan Equity Fund Class X Accumulation
Legg Mason Investment Funds Limited
Open Ended Investment Company
1.02 %
Risk Rating
3 Year Sharpe
3 Year Alpha
0 %
To achieve capital growth through investment in securities of Japanese companies. The Fund seeks to achieve its objective by investing at least 80% of its net asset value in the securities of Japanese companies, which have above average growth prospects relative to the shares of Japanese companies as a whole. The Fund may hold up to 10% of its net asset value in cash or near cash where, in the Investment Manager’s opinion, attractive investment opportunities cannot be found. In exceptional market conditions and/or for liquidity management purposes, the Fund may hold cash or near cash in excess of 10% of its net asset value.
Holding %
Nihon M&A Center Inc 9.05 %
PeptiDream Inc 8.55 %
M3 Inc 8.37 %
Pan Pacific International Holdings Corp 5.99 %
SMS Co Ltd 5.04 %
GMO Payment Gateway Inc 4.44 %
Benefit One Inc 4.23 %
en-japan Inc 3.75 %
Nintendo Co Ltd 3.29 %
Welcia Holdings Co Ltd 3.24 %
Region %
Japan 100.00 %
Sector %
Healthcare 41.05 %
Industrials 22.42 %
Financial Services 10.18 %
Consumer Defensive 9.27 %
Technology 6.90 %
Legg Mason Investment Funds Limited
EC2M 3AB, London, United Kingdom
Legal Structure
Open Ended Investment Company


Hideo Shiozumi
Joined 10/22/1996

Hideo Shiozumi is a Japanese national based in Japan who has 37 years of investment experience. He was educated in the United States with a BA in Economics, Guilford College, Greensboro. He has been fund manager since launch. Previously managed money for Robert Fleming in London and managed the Japanese investment of Geroge Soros' quantum fund.

Data provided by Morningstar.

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