The FSA Spy market buzz – 24 March 2023
Bitcoin rolling futures, new fund pricing models gather pace, greenbleaching, sustainable bonds (not), thematic investing at the top; consultant jokes, Munger’s wisdom and much more.
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.
Part of Mark Allen.