Legg Mason IF Japan Equity Fund Class X Accumulation
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
|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 %|
|Financial Services||10.18 %|
|Consumer Defensive||9.27 %|
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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