Barings Japan Growth Trust
as of 19/07/2019
|Umbrella||Baring Fund Managers Limited|
Share Class Info
|Share Class||Class A GBP Acc|
|Accumulating / Distributing||Accumulative|
|Share Class Inception Date||13/05/1985|
Please be advised, that this Trust changed from dual to single pricing on Monday 12 December 2016. This means that a single price is applied to any transaction in units whether the investor is purchasing or selling units. The single price is based on the mid-market value of the underlying investments of the Trust. For further information please review the document on the hyperlink below.
Summary fund objective
This commentary relates to the month of August 2017- to be read in conjunction with the factsheet.
The Japanese market ended the month of August broadly flat but returns in British pounds were negatively impacted by the Yen strengthening versus the pound. The Trust performed better than the performance comparator as we had lower exposure to the financials sectors than the performance comparator, and those sectors posted negative returns in August. JGB yields were up strongly during the month, which negatively impacted financial stocks. Furthermore, our strong stock selection contributed strongly to our Fund’s returns. Daifuku, a maker of automation systems, continues its strong performance in August. Yume No Machi, which operates food delivery services, Yamaha Motors, maker of motorcycles and motor boats, and Peptidream, a provider of drug-discovery platform all contributed strongly to returns. Mabuchi Motors performed weakly following disappointment on the pricing environment and we are in the process of reviewing it.
The fund continues to pursue a strong investment philosophy in selecting and investing in companies with unrecognised growth fundamentals, quality business franchises with reasonable valuations. Most companies are now done announcing first quarter results. The results season has for the most part been an encouraging one, with many companies posting good sets of results. Mabuchi Motors is under review, following a disappointing set of earnings and we have scheduled a conference call with the company, upon which we expect to reach an investment decision.
Geopolitics dominated the news in August and in Asia the focus was on North Korea accelerating nuclear development activities. In Japan, these events have boosted the popularity of Prime Minister Abe which may prove useful if he was to advance his more nationalistic agenda. In the meantime, economic numbers were positive in Japan, with Quarter Two (Q2) Gross Domestic Product (GDP) numbers very strong and, importantly, driven by domestic activity. This bodes well if Japan is to detach itself from being a cyclical proxy to global economic activity. We strongly believe this environment favours strong stock selection and that our focus on reasonably valued growth opportunities has positioned the trust well for this scenario.
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