The FSA Spy market buzz – 16 May 2025
Playing monopoly with ETFs; Eastspring is worrying about loss aversion; Family office explosion; SGX wants more action; The Fear and Greed Index; Retail investors plough on; Deepfake fraud and much more.
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.
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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