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EFGAM extends distribution of Japan Equity Fund

Japan Equitysm.jpg
34 days ago (09 Nov 2018)  |  

Following the integration of former BSI's investment management business into EFG Asset Management’s (EFGAM), the New Capital MultiNippon Fund (formerly the BSI Multinippon Fund) has been redomiciled from Switzerland to Dublin and renamed the New Capital Japan Equity Fund, to allow for wider distribution. In addition, the New Capital Fund Lux – Japanese Stocks has been merged into the newly named fund bringing assets under management in the fund up to $98m.

Michele Malingamba has been running both the BSI Multinippon Fund since its inception in 1998 and the New Capital Fund Lux – Japanese Stocks since its inception in 2015. The newly named New Capital Japan Equity Fund is a long-only, high conviction fund with typically 50 holdings, targeting the most promising businesses across Japan. Its unconstrained, all-cap approach focusses on niche companies with technology advantages, companies that exhibit an entrepreneurial management style and firms benefiting from Japan’s structural reform. This is supported by EFGAM’s Future Leaders Panel.

With a ten-year annualised return of 5.81%, and a seven-year annualised return of 12.67%, the Fund has outperformed the benchmark with a return of just over 103% compared to the benchmark return of 85% respectively since inception.*

Commenting on the prospects for Japanese equities, Michele Malingamba said: ”Japan is at a fascinating juncture following decades of little to no growth. This is, in part, due to Shinzo Abe’s structural reforms which have seen corporate tax rates cut and better control of debt financing. With his re-election as leader of the Liberal Democratic Party (LDP), putting him on course to being the longest serving prime minister and a continuation of his economic stimulus programmes. Whilst the LDP is still some way off hitting their target inflation mark of 2%, wages are rising and GDP growth is well above expectations. Corporates continue their more favourable treatment of shareholders with dividends and share buybacks continually on the up. Japan has also made increasing advances in ecommerce and some of these newer businesses are beginning to enter the main indices. Quality leadership will likely be the key determinant to their success.”

Commenting on the domicile and name change of the fund, Moz Afzal, Chief Investment Officer of EFGAM said: "The changes made to the fund reflect an ongoing effort to align the ex-BSI funds with that of our existing range. The ex-BSI funds were largely focused on the internal investor audience, with this change we are now offering strategies to external audiences in line with our existing Dublin range offered by New Capital. Michele has an outstanding long term track-record and many years of experience investing in Japanese equities and we’re very confident that the fund will continue to benefit from Japan’s ongoing structural reforms.”

 

*Performance

Annualised performance

 

1-year

3-year

5-year

7-year

10-year

Since Inception

New Capital Japan Equity Fund JPY Inst Acc

-14.38

2.26

6.24

11.51

10.37

2.43

MSCI Japan Gross Total Return Local Index

5.30

6.42

9.94

14.74

9.23

1.49

Past performance is not necessarily a guide to the future. The value of your investments and the income from them may fall as well as rise as a result of market as well as currency fluctuations and you may not get back the full amount invested. Fund performance is net of fees and representative of the JPY Inst Acc. Source: EFG Asset Management, Bloomberg. As at 31 October 2018.

To learn more about the Japan Equity Fund please click here.

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