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LF MORANT WRIGHT NIPPON YIELD B

LF MORANT WRIGHT NIPPON YIELD B - Overview

Overview of LF MORANT WRIGHT NIPPON YIELD B Buy in ISA Buy in Investment Account

The fund aims to provide long-term income growth whilst preserving and growing its capital value though investment in a multi-cap portfolio of Japanese equities. Morant Wright is a dedicated Japanese fund management house with a strong value bias. The managers focus on identifying companies with strong balance sheets and/or business franchises that are trading at a discount to their assets and, as a result, the fund is generally quite defensively positioned.

  • Standard Initial Charge
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Japan
Structure OEIC
Launched August, 2010
Size £585m
Yield 2.4%
Charging basis Capital
Dividends paid Apr, Dec

Charges

Standard initial charge
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.18%

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

Morant Wright is a London-based boutique, established in 1999 and specialising in Japanese equities. Founders Ian Morant and Stephen Wright are very experienced managers with a consistent and long track record, and have built up a strong team around them. The team place a high importance on capital preservation and the fund tends to perform well in difficult stock market conditions, though it will typically lag strongly rising markets. The team are not constrained to the typical large companies, instead they explore further down the market capitalisation spectrum to find good investment opportunities.

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 35
Mid Caps 37
Small Caps 28
View all performance data for this fund

Investment process

The team focus on Japanese companies which are well capitalised with strong balance sheets, and are trading at a discount to intrinsic value. Intrinsic value is normally defined as a discount to book (or asset value). Morant Wright screen for companies that are cheap on this metric as well as searching for companies with low debt to equity and high interest cover. Their investible universe typically consists of 300 companies, which are followed closely as valuations change over time. Their ultimate objective is to identify companies that offer the potential for significant growth over the long term. The fund does not carry an explicit yield guarantee but since launch it has comfortably exceeded the benchmark TOPIX index.

Live feed

Bid price(inc) 368.37p
Accum units 452.07p
Fund commentary 15/05/18
Fund data updated on 20/09/18

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 35
Mid Caps 37
Small Caps 28

Top 10 holdings

As at: 30/04/2018
2.9% Tokio Marine Hldgs Inc
2.88% Fuji Media Hldgs Inc
2.79% Ms&Ad Insurance Group Hldgs Inc
2.79% Sumitomo Mitsui Financial Group Inc
2.78% Mitsubishi Ufj Financial Group
2.74% Sumitomo Mitsui Tr Hldgs Inc
2.7% Sumitomo Electric Industries
2.56% Toyota Motor Corp
2.49% Nissan Motor Co
2.4% Hitachi Capital Corp
Source: Trustnet

Sector breakdown

Transport Equipment 16%
Building & Construction 16%
Banks 12%
Financials 9%
Basic Materials 7%
Machinery 7%
Other Metals 7%
Information Technology 6%
Trade 6%
Electronic & Electrical Equipment 5%

Portfolio details

50-70 stock portfolio.

Constraints

Typically holdings are limited to 3% in a portfolio and no more than 1% of a company's free float
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
13/14 14/15 15/16 16/17 17/18   3 years 5 years Career 3 years 5 years Career
0.18% 0.11% 0.00% 0.42% -0.21%   0.07% 0.10% 0.45% 73.60% 87.50% 99.70%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Morant Wright Team

Manager. Stephen Morant jointly founded Morant Wright in 1999. Previously he was a partner at Cazenove & Co and was responsible for Japanese equities having joined them in 1978. Prior to this he worked as an accountant in both industry and private practice. Ian Wright jointly founded Morant Wright in 1999. Previously he was at F&C from 1981 and was head of their Japan Desk from 1993 to 1999. Prior to this he worked at Clerical Medical where he qualified as an Associate of the Institute of Actuaries, and at Buckmaster & Moore managing institutional funds. Richard Phillips joined in 2001. Previously he worked at Schroders, National Provident Institution and F&C. Andrew Millward joined in 2009. He investment career began at Henderson Global Investors in 1997 and he moved to their Japanese equity team in 2000. Denis Clough joined in 2010 from Schroders and managed Schroder Tokyo from 1985 for 19 years. Tom Mermagen joined in 2004 from Schroders where he was Head of Japanese Equity Research in Toyko.

Track record

Morant Wright Team has 19 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.45%. During the worst period of relative performance (from September 1999 - March 2000) there was a decline of 27% relative to the index. The worst absolute loss has been 29%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -29% (March 2006 - July 2008)
Relative -27% (September 1999 - March 2000)

Sector record since September 1999 (19 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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