2 June 2010Martin Currie announces new co-manager for its market-leading Japan Alpha Fund. The fund will close to subscriptions when it reaches £175 million capacityClaire Marwick to become co-manager alongside Keith Donaldson and John-Paul Temperley
Martin Currie, the specialist active equity manager, today announced that Claire Marwick will become co-manager of its top-performing Japan Alpha Fund. This will take effect from the beginning of June.
Claire, who has nine years' investment experience, joined Martin Currie's Japan team in 2007. The appointment recognises Claire's contribution to the fund and Martin Currie's commitment to ensuring that the team has the appropriate resources to continue to deliver outstanding performance for its clients.
In addition, Martin Currie has decided to close the fund to new investors when it reaches £175 million. Recognising the capacity constraints of its products is an important aspect of what distinguishes Martin Currie. The company has an established set of best-practice disciplines that guide the management of capacity across the business to ensure the integrity of its investment process. Accordingly, products are closed to new business before assets under management can threaten the ability to meet clients' performance expectations.
The Martin Currie Japan Alpha Fund is a high-conviction portfolio, typically consisting of the 30-40 best ideas in Japan. It is unconstrained by any sector or stock limits and can invest across the market-cap range. Ranked top quartile since its launch in January 2006, the Japan Alpha Fund is a proven performer. So far this year, the £32-million fund is the best-performing fund in the IMA Japan sector, with a return of 23.6% against a sector average of 15% and a Topix return of 14.6%. Keith Donaldson and John-Paul Temperley are A-rated by Citywire.
Andy Sowerby, managing director of client service, sales and marketing, said: "After a 20-year bear market, it is hardly a surprise that Japan is so under-owned by retail and institutional investors. But so far this year, we have seen a significant spike in interest. This has been echoed by the recent Bank of America Merrill Lynch global fund managers' survey, which shows that Japan has achieved its highest overweight weighting for several years.
"The Martin Currie Japan Alpha Fund is a strategy that draws on the very best ideas of our six-strong Japan team, who have almost 100 years of investment experience between them. Because of the increased interest in this fund, we have decided to announce the available capacity early. We have limited capacity to ensure that there is no strain on the investment process. This will enable the team to continue to deliver superior returns for our clients.
"We are also delighted to announce the promotion of Claire Marwick to co-manager of the fund. She has proven to be a real find and is a talented and creative investor."
Commenting on the investment outlook for Japan, Keith Donaldson, co-manager of the fund, said: "The Japanese market is trading on a discount to its historical average. We see upside in consensus earnings expectations, especially regarding the potentially significant positive impact of the yen, but also in relation to an increase in domestic demand. Valuations remain very cheap on price to book, and shareholder returns are set to improve through increased dividends and a resumption of share buybacks later in the year.
"We think the longer-term outlook is exceptionally positive. Japan offers low valuations and strong export-related growth prospects. A likely return to easier monetary conditions in the domestic economy could be the spur that is needed to boost domestic demand at a time when export demand remains robust. A weaker yen will obviously have a detrimental impact on US dollar or euro returns, but the likely boost to earnings for Japanese manufacturers should more than compensate."
Additional InformationKeith Donaldson, Director, Head of Japan TeamKeith is head of Martin Currie's Japan desk, and co-manager of a number of our Japan funds, including core, alpha and hedge fund strategies. Keith joined Martin Currie's Japan team early in 1997. He moved to Merrill Lynch as managing director of Japanese equities for the European market at the end of 2000, before returning to Martin Currie to take charge of our Japan team in 2003. Before working with Martin Currie, Keith was head of Japanese equity sales at Morgan Stanley. He was also head of Japanese equity research at Salomon Brothers Asia. Keith's experience of the Japanese equity market began in 1988, working for James Capel Pacific Ltd in Tokyo. Prior to this, he was a UK analyst specializing in the technology and defence sectors.
John-Paul Temperley, DirectorJohn-Paul joined Martin Currie in 1998. He is co-manager of the Martin Currie Absolute Return Fund - Japan and the Martin Currie Japan Alpha Fund. In common with our other product managers, John-Paul is also an analyst, covering the Japanese autos and transportation sectors. John-Paul previously worked on SBC Warburg's Japanese equities desks in both Tokyo and London. He is fluent in Japanese and Mandarin Chinese.
Claire Marwick, Investment Manager, CFAClaire joined Martin Currie's Japan team in August 2007. She previously worked with the Alliance Trust in Hong Kong, where she spent three years analysing Japanese equities. Claire started her career with UBS, working in mergers and acquisitions. She advised on several Japanese transactions and was seconded to the company's Tokyo office. Claire has an MBA from Harvard Business School.
For further information please contact:Amy Fisher Director of Corporate Communications
Tel: +44 (0) 131 479 4780
Mobile +44 (0) 7825 971421
AFisher@martincurrie.com
