M&G (Lux) Japan Fund

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the Japanese stockmarket over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in the shares of companies, across any sector and of any size, that are based, or do most of their business, in Japan. The fund is concentrated and usually holds shares in fewer than 50 companies.

Other investments: The fund may invest in other funds and cash or assets that can be turned into cash quickly.

Derivatives: The fund may use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The investment manager’s focus is on stocks where it is believed that the share price is not fully valuing the company's sustainable earnings. The investment manager applies disciplined and rigorous fundamental analysis during the selection process to ensure a high level of conviction around the valuation for each of the companies held in the fund.

Benchmark: MSCI Japan Net Return Index

The benchmark is a comparator against which the fund’s performance can be measured. It is a net return index which includes dividends after the deduction of withholding taxes.The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.

The fund is actively managed.The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of the fund in the Prospectus.

Risk indicator

Risk level 6

Risks associated with the fund

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.

The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.


The performance webpage for this fund is currently being reconfigured.

Fund Team

Carl Vine

Carl Vine - Fund manager

Carl Vine was appointed fund manager of M&G (Lux) Japan Fund and M&G (Lux) Japan Smaller Companies Fund in September 2019 after joining M&G as Co-Head of Asian Investment, with 22 years of investment experience. In December 2019, he was appointed deputy fund manager of the M&G (Lux) Asian Fund. Carl co-founded Oxford-based Port Meadow Capital Management, a boutique investment firm, in 2014. Prior to that, he worked as a Managing Director and Portfolio Manager for SAC Capital Advisors in Hong Kong and was the Asian-based member of their global investment committee. Before that, Carl was a Managing Director at UBS in Hong Kong, where he invested proprietary capital across Asia and Japan, and a Principal for TPG-Axon Capital. He began his career with Prudential Portfolio Managers in London, before relocating to Tokyo to open Prudential’s Japan office. Carl holds a Bachelor of Arts (Hons) in Politics, Philosophy & Economics from Oxford University.

 

 Team member biography
Dave Perrett

Dave Perrett - Deputy Manager

David Perrett was appointed deputy fund manager of M&G (Lux) Japan Fund and M&G (Lux) Japan Smaller Companies Fund in September 2019, after joining M&G as Co-Head of Asian Investment, with 28 years of investment experience. In December 2019, David was appointed fund manager of the M&G (Lux) Asian Fund. He was previously with Oxford-based Port Meadow Capital Management, a boutique investment firm he co-founded with Carl Vine in 2014. Prior to that, he was a Managing Director and Senior Portfolio Manager with UBS, specialising in investing capital across the Asia Pacific region and was based in Hong Kong. David also served as Chief Investment Officer, Life and Institutional for Prudential Asset Management (Hong Kong), having begun his career with Prudential (London) in 1991. David holds a Bachelor of Science, Economics from the London School of Economics and a Master of Science from the University of London.

 

 Team member biography
Sunny Romo

Sunny Romo - Investment specialist

Sunny Romo is the investment specialist covering Japanese equities and the Value range. She joined M&G in June 2018 from Insight Investment, where she looked after their institutional relationships with Japanese investors. Prior to that, Sunny spent nine years at Asset Management One as an equities trader, and later as senior relationship manager for EMEA clients. Sunny is a committee member of the Pension and Lifetime Savings Central London Group. She is fluent in English, Japanese and Mandarin Chinese. Sunny graduated from the University of Reading with a BA in International Relations and Economics. She is a CAIA charter holder and holds the Investment Management Certificate (IMC).

 Team member biography

Ratings

Rating is at a share class level

2 Star Rating

Ratings as at 31/12/2019. The Morningstar Overall Rating. Copyright © 2019 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2019 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.