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Mutual Fund Top Trumps: Japan Equities – 25 January 2024

This week FSA presents a quick comparison of two Japan equity funds: Eastspring Inv Japan Dynamic and Fidelity Japan Value.

Based on the popular 80s card game, each week we select an asset class and use FE fundinfo data to compare two funds based on their three-year performance, assets under management, alpha, volatility, ongoing charges and information ratio to decide which is the Top Trump.

Eastspring Inv Japan Dynamic fund

The Fund seeks to generate long-term capital growth through a concentrated portfolio of the team’s highest conviction investment ideas. The team employs a disciplined, priced focused approach anchored around relative valuation to identify and exploit behavioural sources of mispricing.

Sector breakdown:

  1. Industrials (21.8%)
  2. Consumer discretionary (17.8%)
  3. Materials (16.2%)
  4. Financials (14.0%)
  5. IT (11.8%)
  6. Real estate (7.2%)
  7. Healthcare (5.6%)
  8. Consumer staples (5.0%)

Fidelity Japan Value fund

The fund aims to achieve capital growth over time, following a bottom-up, stock selection focused approach that places emphasis on valuation analysis. While stock selection is driven by bottom-up valuation analysis, through the portfolio construction process he manages the overall exposure to macroeconomic risks, including currency, interest rates and commodity prices.

Sector breakdown:

  1. Electrical appliances (20.4%)
  2. Construction (9.0%)
  3. Banks (8.5%)
  4. Chemicals (7.8%)
  5. Machinery (6.8%)
  6. Transportation equipment (6.0%)
  7. Wholesale trade (5.9%)
  8. Retail trade (4.0%)
  9. Glass and ceramics products (3.3%)
  10. Land transportation (3.3%)

Part of the Mark Allen Group.