The fund, part of the company’s OEIC range, is expected to launch at the end of March and will be managed by Scott McGlashan and Ruth Nash.
“The Japanese market has had a huge rally over the past year, but we believe that this is merely the beginning of a multi-year bull market. To date, the rally has been driven almost entirely by foreigners. However, we expect that domestic investors will play a bigger role from now. As domestic involvement increases, interest in dividends will grow,” McGlashan, senior fund manager, said.
Unlike the existing Japan Fund, which has a pronounced small and mid-cap bias, the new Ireland-registered fund will be a large-cap product and incorporate a blend of dividend growth and dividend yield.
“A dividend culture is emerging in the Japanese equity market. While payout ratios in Japan still lag the global average, this is likely to change as companies attempt to cultivate long-term shareholders by increasing dividends,” Ruth Nash, senior fund manager, commented.
The existing Japan Fund, launch in May 2004, is soft-closed to new investors.
