InvestmentsNov 9 2015

Coupland Cardiff targets £200m for Japan trust launch

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Coupland Cardiff targets £200m for Japan trust launch

Coupland Cardiff is to launch a Japanese equity investment trust aiming to raise £200m from investors.

The CC Japan Income & Growth Trust will be managed by Richard Aston who also manages a $423m (£280m) Oeic of the same name.

Holding between 30 to 40 stocks, it will aim to deliver an attractive target dividend of at least 3 per cent.

Coupland Cardiff said it is launching the investment trust to take advantage of structural changes taking place in the Japanese market. It will invest in companies the firm believes are undervalued and focus on stable yield, dividend growth and special situations.

Mr Aston said: The combination of high cash levels, significantly better dividend cover than in other major global equity markets, and recent government policies to encourage the improvement of shareholder returns, mean that Japan now offers an internationally competitive and growing dividend yield.

“Since many of these changes are structural, not cyclical, the investment opportunities represented are we believe more sustainable in nature than those typically associated with Japan.”

The CC Japan Income & Growth Oeic managed by Mr Aston has returned 20.5 per cent over one year, versus a 15.5 per cent return for an offshore Japan equity fund peer group, according to FE Analytics.