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LEGAL & GENERAL JAPAN INDEX R

LEGAL & GENERAL JAPAN INDEX R - Overview

Overview of LEGAL & GENERAL JAPAN INDEX R Buy in ISA Buy in Investment Account

This fund's objective is to track the performance of the FTSE World Japan Index as closely as possible. This index consists of predominantly large and mid cap Japanese companies. The replication technique involves purchasing the underlying companies. This will be done in proportion to their weighting in the index, although for the less liquid stocks the manager may employ sampling.

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

Fund summary

Sector Japan
Structure UNIT TRUST
Launched June, 1989
Size £1,337m
Yield 1.1%
Charging basis Income
Dividends paid 24 Jun, 24 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.65%
Ongoing charges figure 0.83%

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 Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

For investors that wish for low cost exposure to Japan the Legal & General Japan Index fund offers one option. In the past the fund has been relatively successful at achieving this and its variance from this index has been roughly in line with peers. Furthermore this tracker does not use derivatives or conduct stock lending and therefore does not expose investors to counterparty risk. Fees are also not excessive. However investors should be aware that trackers by their very nature will underperform the index due to costs.

Portfolio

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 100
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 83
Mid Caps 17
Small Caps 0
View all performance data for this fund

Investment process

The fund's aim is to track the performance of the Japanese equity market as represented by the FTSE World Japan Index. The fund does this largely through purchasing the stocks in proportion to their weight in the index and the number of investors in the trust. This process is referred to as full replication. However this can be expensive and inefficient for smaller companies in the index so the manager may use stratified sampling where it is deemed appropriate which reduces costs but also increases the divergence from the index (known as tracking error). The trust does not use derivatives in seeking to track the index only to manage cash etc. The manager will also not engage in stock lending, which can help to increase returns. Investors should not therefore be exposed to counterparty risk.

Live feed

Bid price(inc) 53.77p 22.17p
Accum units 61.22p
Fund commentary 29/03/12
Fund data updated on 16/08/19

Asset allocation

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0

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 83
Mid Caps 17
Small Caps 0

Top 10 holdings

As at: 30/04/2019
4.2% Toyota Motor Corp
2.4% Softbank Group Corp
1.7% Mitsubishi Ufj Financial Group
1.6% Sony Corp
1.5% Keyence Corp
1.5% Takeda Pharmaceutical Co
1.3% Honda Motor Co
1.3% Sumitomo Mitsui Financial Group Inc
1.1% Kddi Corp
1.1% Mizuho Financial Group Inc
Source: Trustnet

Sector breakdown

Consumer Goods 23%
Industrials 23%
Financials 13%
Consumer Services 11%
Health Care 9%
Basic Materials 6%
Telecommunications 5%
Technology 5%
Cash & Cash Equivalents 3%
Utilities 2%

Portfolio details

Around 450 stocks.

Constraints

Portfolio adheres tightly to its reference index, targeting a tracking error of +/-0.5% in 2 out of 3 years.
This is a tracker fund and so is managed passively.

Average monthly relative returns Bestinvest MRI
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
-0.07% -0.02% -0.06% -0.06% 0.05%   -0.03% -0.03% -0.03% 48.00% 45.20% 50.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Tom Hammond

Manager. Hammond joined Legal & General in February 2000 initially as an Investment Reporting analyst and then as a fund accountant for the Linked Life fund. He joined the Index Funds team in November 2005 as an Assistant Manager and was promoted to Fund Manager in September 2008. He manages funds in all regions of the world and currently assists with the management of UK, Global and Asia Pacific equity funds.

Track record

Tom Hammond has 9.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.03%. During the worst period of relative performance (from October 2011 - March 2018) there was a decline of 6% relative to the index. The worst absolute loss has been 16%.

Periods of worst performance
Absolute -16% (February 2011 - October 2012)
Relative -6% (October 2011 - March 2018)

Sector record since February 2010 (10 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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