Posted inHead To Head, News

HEAD-TO-HEAD: First State versus Janus Henderson

FSA compares two Japan equity products: the First State Japan Equity Fund and the Janus Henderson Horizon Japan Opportunities Fund.
by Rupert Walker

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Conclusion

Oreana has had exposure to the First State fund in its portfolios, but sold its holdings in April.

“We didn’t lose confidence in the manager; rather we took a negative view on the prospects for Japan equities,” said Poole.

He remains pessimistic about the market outlook, despite the continued strong performance of Japanese stocks.

The high growth, mid- and small cap concentration of the First State fund, with its emphasis on domestically-oriented companies, worked well for Oreana, but Poole believes that further gains will be constrained.

“If an investor is structurally compelled or mandated to allocate to a Japan equity fund, then the Janus Henderson fund might now be a better option,” he said.

“It is a core growth fund that focuses on the largest Japanese companies, comprising the biggest part of the benchmarks indices and therefore should be a steady, beta-tracking performer,” he said.

“You might not earn much alpha, but you are likely to suffer less volatility,” he added.

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