St James’s Place has added Comgest to its underperforming Japan fund, forming a multi-manager solution with the existing manager, Nippon Value Investors.
The change is effective from 19 March at which point each manager will have responsibility for 50% of the fund. SJP said this will allow for “greater diversification with exposure to different investment styles resulting in a smoother return profile for clients”.
The fund’s current manager Yoshihiko Ito will be joined by Richard Kaye and Chantana Ward, who have worked together on Comgest’s Japan equity strategy for 10 years.
SJP Japan has lagged peer group
The £54.8m SJP Japan fund is fourth quartile on a three-year view and third quartile over one year, according to Trustnet. It has returned -12.9% over three years, below the LF Japan Equities average of 11.4%. However, performance has picked up over the past year, delivering 27.9%, just below the sector average of 33.6%.
The Comgest Growth Japan fund, run by Kaye and Ward, has returned 52.9% and 40.8% over one and three years, respectively, compared with the sector average of 40.9% and 16%.
Comgest adds growth element to portfolio
SJP chief investment officer Tom Beal said: “The current manager of our Japan fund has a distinct value approach to investment management. Adding Comgest will allow stock selection to play a larger role in the pursuit of investment returns, by bringing a quality growth style to the fund and therefore increased diversification opportunities.”
Ward said: “We’re delighted to be partnering with St James’s Place on their Japan fund. Comgest’s long-term investment strategy, focused on sustainable growth companies, makes Japan an exciting market for our team of stock pickers.
“Our on-the ground team in Tokyo and ability to implement a long-term investment horizon create a real edge in this under-researched market. The fund offers investors access to a concentrated selection of high-quality franchises, benefitting from exposure to both changing dynamics in Japan and dynamic growth in neighbouring Asia.”
SJP reported an increase in funds under management for its Asian operations in its 2020 annual results of 26% at £1.2bn.
