Although adopting an unconstrained approach, Brett keeps a close eye on diversification to mitigate stock-specific risk and overlap.
The top 10 holdings currently account for a third of the portfolio with SoftBank Group (4.5 per cent), the largest individual position. Financial services company SBI Holdings and e-commerce and online retailing platform Rakuten complete the top three.
In the past three years the trust has returned 10.5 per cent to investors, it has also started to pay a small dividend since 2018. At present, the trust is operating at a 3.7 per cent discount.
Ongoing charges stand at 0.66 per cent.
Given the small and mid-cap focus, this trust will be more volatile than its peers but if you do believe Japan’s fortunes are changing, the team’s excellent stock picking skills make this a strong consideration to tap into that upside.
The fact this trust has returned more than 300 per cent in a decade, and 550 per cent since launch supports the view.
As Brett artfully summarises: “Lost decades for Japan haven’t been lost decades for Japan Trust investors.”
Darius McDermott is managing director of FundCalibre
