Earlier in the week the company announced the decision to focus the closed-end fund solely on Japanese equities because it felt the demand for an Asia Pacific product which also held exposure to Japan was waning.
The change in mandate and name is yet to be ratified by shareholders, but Morningstar said it is clear the investment objective is subject to possible change and that the fund’s remit was likely to be different going forward.
“Until such time as Morningstar has clarity on the fun’s future and its investment objective, the rating will remain under review,” the agency said.
It was previously rated silver. There are only three trusts in the sector, and the trust has delivered a NAV performance of 62.2% over five years versus 64.5% from the sector average.
