Market Review
Japanese equity markets were down over April, giving back some of their impressive first-quarter gains. The Topix index fell 5.86% in yen, total return terms. Retail and food companies turned in the best performances, while banks and energy resources were the month’s laggards.
Fund Performance
The Fund performed in line with the sector average in April. The key drivers of performance were Familymart and Shimamura where the Fund was overweight and the stocks performed strongly. The biggest drag on performance was Sumitomo Metal which fell sharply and the Fund was overweight.
Fund Positioning
We believe that Japan still stands to benefit from the post-earthquake rebound and ongoing rebuilding work. The Fund remains defensively positioned.
Nick Duncan & Stephen Hall
30 April 2012