There are mixed messages coming out of Japan at the moment. Consumer spending is increasing and policies to end 15 years of deflation are kicking in; but this is happening in tandem with a planned hike in sales tax which could discourage spending.
In June 2013, Japan funds had the highest monthly inflows in almost two years with net retail sales standing at £62m according to the latest figures from the Investment Management Association (IMA). From outflows of £4m on average over the previous 12 months to net retail sales increasing to £62m in June, interest in Japan funds has visibly picked up.
The Table below shows the top and bottom 5 performers in the IMA Japan sector over the past 12 months to 5 August. On an initial investment of £1,000, the average return for the sector was £1,343. No funds in the sector failed to return a profit. The lowest performing fund was the Scottish Widows HIFML Japanese Focus 1 which returned £1,201 on its initial investment.
The highest return came from Legg Mason Japan Equity, with £1,866. The Legg Mason fund focuses heavily on technology and healthcare, and is considerably ahead of the second best-performing fund, the Neptune Japan Opportunities fund, which returned £1,546 and invests primarily in industrials and financial services.
| Best And Worst Japan Funds One Year To 5 August 2013 | |
| Top 5 | |
| Legg Mason Japan Equity A | £1,866 |
| Neptune Japan Opportunities A | £1,546 |
| Baillie Gifford Japanese A | £1,503 |
| IP Japan | £1,482 |
| GLG Japan CoreAlpha Retail Acc | £1,468 |
| Bottom 5 | |
| Fidelity Japan Acc | £1,260 |
| Lindsell Train Japanese Eq A GBP Quoted | £1,257 |
| Schroder Japan Alpha Plus Acc | £1,208 |
| Tiburon Taiko Unhdg GBP | £1,204 |
| Scottish Widows HIFML Japanese Focus 1 | £1,201 |
| Sector average | £1,343 |
| Figures as at 5 August 2013, based on £1,000 initial investment. Source: Morningstar | |
