Consistency has prevailed within the Martin Currie Japan Equity strategy. An enduring focus on quality companies that rapidly grow their earnings has allowed the strategy to outstrip the returns realised by many competitors and indeed the broad Japanese market since inception in 1996. As we enter a new era of strategy management, we focus on the portfolio fundamentals and how the team intend on safeguarding the longstanding legacy of the ‘New Japan.’
The Martin Currie Japan Equity strategy has a long-standing reputation for identifying and partnering with some of the fastest growing companies in Japan. There is a finite quantity of truly quality businesses across global markets and the Japanese market is no exception. Consequently, the team continue to operate a concentrated, low turnover portfolio composed of companies on steep growth trajectories; they look for firms with robust business models, strong management teams, but fundamentally trading on reasonable multiples. This enables the team to assert meaningful conviction in their best ideas. This enables the team to assert meaningful conviction in their best ideas. Benefitting from the power of compounding, the strategy seeks to generate returns superior to the broad Japanese market.
The team recognise the importance of prevailing societal and economic themes, and these trends are incorporated into their fundamental, bottom-up research. By screening the investment universe for exposure to the structural themes embedded in the culture of Japanese society, the research team can scrutinise the business models of a subset of companies already benefitting from long term tailwinds.
Stewardship and sustainability have affirmed a foothold deep in the culture of Martin Currie since 2009, when we became an early signatory to the UN PRI. This core belief reverberates through each of our portfolios in the form of fully integrated ESG analysis, engagement, and voting activity. We believe that ESG integration and financial returns are fundamentally intertwined, and to achieve the greatest impact these stewardship activities should be conducted by those individuals making the investment decisions.
The team recognise the importance of prevailing societal and economic themes, and these trends are incorporated into their fundamental, bottom-up research.
Regulatory information and risk warnings
This information is issued and approved by Martin Currie Investment Management Limited (‘MCIM’), authorised and regulated by the Financial Conduct Authority. It does not constitute investment advice. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.
The information contained in this document has been compiled with considerable care to ensure its accuracy. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Martin Currie has procured any research or analysis contained in this document for its own use. It is provided to you only incidentally and any opinions expressed are subject to change without notice.
This document may not be distributed to third parties. It is confidential and intended only for the recipient. The recipient may not photocopy, transmit or otherwise share this [document], or any part of it, with any other person without the express written permission of Martin Currie Investment Management Limited.
This document is intended only for a wholesale, institutional or otherwise professional audience. Martin Currie Investment Management Limited does not intend for this document to be issued to any other audience and it should not be made available to any person who does not meet this criteria. Martin Currie accepts no responsibility for dissemination of this document to a person who does not fit this criteria.
The document does not form the basis of, nor should it be relied upon in connection with, any subsequent contract or agreement. It does not constitute, and may not be used for the purpose of, an offer or invitation to subscribe for or otherwise acquire shares in any of the products mentioned.
Past performance is not a guide to future returns.
The distribution of specific products is restricted in certain jurisdictions, investors should be aware of these restrictions before requesting further specific information.
The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.
The information provided should not be considered a recommendation to purchase or sell any particular strategy/ fund/security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable.
Risk warnings – Investors should also be aware of the following risk factors which may be applicable to the strategy shown in this document.
- Investing in foreign markets introduces a risk where adverse movements in currency exchange rates could result in a decrease in the value of your investment.
- Investing in foreign markets introduces a risk where adverse movements in currency exchange rates could result in a decrease in the value of your investment.
- This strategy may hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the strategy’s value than if it held a larger number of investments.
- Smaller companies may be riskier and their shares may be less liquid than larger companies, meaning that their share price may be more volatile.
- Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. Accordingly, investment in emerging markets is generally characterised by higher levels of risk than investment in fully developed markets.