We have added Janus Henderson Japan Opportunities to our Recommended list.

Fund Snapshot

A concentrated, stock-picking fund that is managed with a strong sense of risk. The portfolio is composed of quality stocks and mis-priced opportunities, with the team investing in companies creating shareholder value.   Within its sector, the fund features in our ‘Larger-Cap, Blend’ category.

Fund Highlights

• The fund is managed by Tokyo-based Portfolio Manager and Head of Japanese Equities, Junichi Inoue.
• The manager believes that strong cash flow returns from capital-efficient businesses will create shareholder value. The bottom-up stock-picking approach aims to identify well-managed businesses that generate free cash flow returns above their cost of capital.
• The portfolio typically comprises around 30 stocks, as the manager believes that this level of concentration ensures that each position has a meaningful influence on the portfolio’s outcome.
• The portfolio consists of “quality” stocks, which make up at least two-thirds of the portfolio, and “mispriced opportunities”, which make up the balance of the portfolio.

Key Characteristics and Expected Outcome

• In a sector that has its fair share of highly stylised funds, the manager is very intent on offering a high conviction fund that does not suffer the extremes of risk/return outcomes.
• Whilst favouring a concentrated portfolio of best ideas, the manager is highly aware of the fund’s risks compared to the index.  With this in mind, tracking error is monitored closely, both at the individual stock level and the overall portfolio level.
• There is no structural style bias, and the fund resides in the “core” space, albeit with a tilt to “quality growth”.
• Performance is most likely to struggle when good company fundamentals and attractive valuations are overlooked, and when growth or value style factors within the market are very dominant.
• The fund is suited to investors seeking a concentrated yet risk-controlled approach, where stock selection decisions drive the success of the strategy.  It can play a core role within a Japanese equity allocation.

To view our factsheet, please visit the fund page on our website.