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AXA FRAMLINGTON JAPAN Z

AXA FRAMLINGTON JAPAN Z - Overview

Overview of AXA FRAMLINGTON JAPAN Z Buy in ISA Buy in Investment Account

The fund aims for capital growth by investing in Japanese companies across all market capitalisations but with an emphasis on small and mid-sized businesses. Manager Chisako Hardie focusses on long-term growth companies which, she believes, have quality management and potential for above-average profitability and growth. This fund is not constrained by a benchmark and portfolio selection is a combination of macro themes blended with bottom-up stock selection.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Japan
Structure UNIT TRUST
Launched April, 2012
Size £224m
Yield 0.0%
Charging basis Income
Dividends paid 15 Apr

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.88%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Chisako Hardie has run this fund since 2010 and has a strong track record of managing Japanese equities and previously managed AXA Framlington Japanese Smaller Companies from launch in 2006 until 2010, when it merged with this fund. The portfolio holds around 100 companies, which provides positive diversification to this relatively small fund. Examples of current portfolio themes include automation/robotics, electronisation of automobiles, rapid growth in the number of foreign visitors and the ageing population.

Portfolio

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 100
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 38
Mid Caps 46
Small Caps 16
View all performance data for this fund

Investment process

Hardie uses a blend of macro themes and bottom-up stock selection to create a diversified portfolio of around 100 holdings. She focuses on companies that show robust growth prospects, proven management, strong balance sheets and attractive valuations. To keep liquidity risk low she avoids companies that are not tradeable within 10 days. When researching companies Hardie uses external research from a number of brokers, but due to poor coverage on small cap companies she conducts her own research. She has around 200 company meetings per year and assesses potential investment opportunities through the use of PE multiples for both the company and its peer group as well as DCF modelling. Based in Edinburgh, Hardie is a Japanese national and visits Japan bi-annually, typically investing in companies after having met with the management team. On a daily basis, she tracks a list of ca. 500 companies of interest and tends to hold investments for many years with a relatively low annual turnover of around 30%. Yet, she has a strong sell discipline, where holdings are sold when she has lost faith in the management or identifies a better opportunity. In situations where investments become fully valued, she typically sells and often re-purchases upon weakness if the company fundamentals remain intact.

Live feed

Bid price(inc) 188.90p
Accum units 271.10p
Fund commentary 23/11/15
Fund data updated on 11/12/17

Asset allocation

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 100
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 38
Mid Caps 46
Small Caps 16

Top 10 holdings

As at: 31/10/2017
1.83% Outsourcing Inc
1.44% Gmo Payment Gateway Inc
1.44% Softbank Group Corp
1.43% Wacom Co
1.42% Shima Seiki Mfg
1.36% Daifuku Co
1.36% Macromill Inc
1.34% Sony Corp
1.25% Nihon M&A Center Inc
1.25% Yamashin-Filter Corp
Source: Trustnet

Sector breakdown

Industrials 30%
Consumer Goods 14%
Health Care 14%
Consumer Services 12%
Financials 12%
Technology 11%
Basic Materials 4%
Money Market 2%
Telecommunications 1%
Utilities 1%

Portfolio details

The portfolio will consist of around 100 stocks with the top 10 typically making up less than 20% of the portfolio.

Constraints

Holdings are evenly spread and are no less than 0.5% or greater than 2%.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
-1.00% 0.99% 0.12% -0.16% 1.38%   0.45% 0.27% 0.06% 50.00% 50.00% 77.90%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Chisako Hardie

Manager. Hardie joined AXA Framlington in May 2006 after six years at Scottish Widows Investment Partnership, where she was an Investment Director within Japanese Equities. She previously worked for Martin Currie Investment Management Ltd (1996-2000), Scottish Life Assurance Company (1994-1996) and Scottish Provident (1991-1994). Hardie holds a BA in Sociology from Keio University, Tokyo and is a Chartered Member of the Securities Analysts Association of Japan.

Track record

Chisako Hardie has 11.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.06%. During the worst period of relative performance (from December 2005 - October 2008) there was a decline of 36% relative to the index. The worst absolute loss has been 51%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 78%.

Periods of worst performance
Absolute -51% (December 2005 - October 2008)
Relative -36% (December 2005 - October 2008)

Other funds managed

  Start Date
AXA FRAMLINGTON JAPAN RApr 2010

Sector record since September 2000 (12 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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