Which Japan fund takes the top position?

Japan olympics funds Asia pendal Platinum BetaShares blackrock ishares

30 July 2021
| By Laura Dew |
image
image
expand image

As Japan takes centre stage of host of the 2020 Tokyo Olympics, how have Japanese equity funds performed?

According to FE Analytics, there were four funds which focused exclusively on Japan. These were Platinum Japan, BetaShares WisdomTree Japan ETF Currency Hedged, BlackRock iShares MSCI Japan ETF and Pendal Japanese Share.

Over one year to 30 June, 2021, the best-performing of the four funds had been BetaShares which returned 36.8%.

This was followed by Platinum, which returned 18.9%, Pendal which returned 17% and BlackRock iShares in fourth place with returns of 14.7%.

The wider Asia Pacific single country sector, within the Australian Core Strategies universe, returned 31%.

Over three years to 30 June, the best-performing fund was also BetaShares, with returns of 28.2% followed by Pendal, BlackRock iShares and Platinum. However, all four funds underperformed the sector which returned 35.4%.

In its most recent factsheet, the BetaShares fund said it sought to access globally-competitive Japanese stocks and provide diversified exposure including to sectors which were under-represented in the Australian market.

The fund’s largest sector weighting was 31.4% allocated to consumer discretionary followed by 22.7% to information technology.

Meanwhile, Platinum Japan manager, James Halse said the fund had exposure to growth cyclicals and deep value plays and that it was pleased by Japanese companies adopting more shareholder friendly policies and improving returns on equity.

“The key to the long-term outlook for the Japanese market, however, is the likely continued improvement in corporate governance, and thus capital allocation and shareholder returns,” he said.

“Around 31% of reasonably investable Japanese stocks trade below their net book value, implying weak profitability and/or lazy balance sheets. This dynamic means improvements in returns on equity should not be difficult to achieve and should provide a tailwind to the Japanese market over the medium to long-term.”

 

Read more about:

AUTHOR

Recommended for you

 
sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

 

MARKET INSIGHTS

Old Fella

Of course a survey commissioned by an adviser coaching business would find that having an external business coach is a k...

5 hours ago
One foot out the door

A financial planner is expected to earn between $95,000 and $120,000 per year, depending on the state. Really? I don't...

14 hours ago
JOHN GILLIES

The whole thing is a bit frightening especially the last note where notes on what might be done could result in the need...

1 day 11 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 6 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

4 weeks ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

6 days 13 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND