M&G (Lux) Japan Smaller Companies Fund

ISIN
LU1670715975

Price (16.09.2019)
28.12

% Price Change
0.68

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income that is higher than the Japanese smaller companies 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 that are based, or do most of their business, in Japan.

Smaller companies are defined as the bottom half in terms of total market capitalisation of all publicly listed companies in Japan. The fund usually holds shares in fewer than 50 companies.

Other investment: The fund may also invest in other funds (including funds managed by M&G), cash or assets that can be turned into cash quickly.

Derivatives: The fund may use derivatives with the aim of reducing risks and costs or managing the fund more efficiently.

Strategy in brief: The fund employs a disciplined approach to analyse and select each company. The strategy aims to benefit from the rise and fall of stock prices. The investment manager invests in companies whose shares are deemed to be undervalued because investors do not always assess investments rationally. The fund manager seeks to profit from such behavioural biases.

Performance comparator: The fund is actively managed. The Russell Nomura Mid-Small Cap Net Return Index is a point of reference against which the performance of the fund may be measured. It is a net return index which includes dividends after the deduction of withholding taxes.

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 invests in shares of smaller companies which may be less liquid and more volatile in price than shares of larger companies.

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.

 

News

Fund Team

Shane Kelly

Shane Kelly - Fund manager

Shane Kelly was appointed co-fund manager of the M&G (Lux) Global Recovery Fund in July 2019 and fund manager of the M&G (Lux) Japan Fund and the M&G (Lux) Japan Smaller Companies Fund in September 2019. Shane joined M&G in December 2017, having previously worked at Alphinity Investment Management (Sydney, Australia) as a research analyst responsible for coverage of the construction materials and healthcare sectors, as well as all quantitative research. Prior to joining Alphinity, Shane worked for Alliance Bernstein (Sydney, Australia) between 2007 and 2010 as risk manager and quantitative analyst. Shane previously worked at M&G between 1999-2007, when he was a member of the portfolio construction and risk team, and prior to that head of the equities performance team. He has a Bachelor of Commerce and Administration from Victoria University of Wellington and a Masters of Applied Finance and Investment from the Securities Institute of Australia.

 

 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 30/04/2019. 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.

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