Multi-managerMay 28 2013

Troy’s Lyon and Brooke pile into Japanese equities

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ByNick Reeve

Troy Asset Management’s Sebastian Lyon and Francis Brooke have added to Japanese equity holdings in their £86m Troy Spectrum fund of funds.

The managers have upped exposure to the CF Morant Wright Japan fund and the Lindsell Train Japanese Equity fund after the Nikkei 225 index, Japan’s leading share index, gain 43.7 per cent in the past 12 months.

Mr Lyon and Mr Brooke said the recent performance of Japanese equities was “breathtaking”. “If [prime minister] Shinzo Abe stacked the timber then the new Bank of Japan governor, Haruhiko Kuroda, lit the fire under the market,” the managers said.

“Zero interest rates, money printing and investors’ desire for income have left equity markets guarded by an open door.

“On several measures the Japanese market is cheaper than alternatives.”

The Troy Spectrum fund now has 11 per cent invested in Japan, split between 7 per cent in the Morant Wright fund and 4 per cent in the Lindsell Train product.

The Morant Wright Japan fund, run by Stephen Morant and Ian Wright, has gained 49.2 per cent in five years to May 20, according to FE Analytics, while Michael Lindsell’s Lindsell Train Japanese Equity fund has gained 33.8 per cent.