Japanese trusts attractive

Professional Adviser
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wide discounts caused by earlier investor reticence make sector tempting for stock selectors

Japanese investment trusts are trading on 17.4% discounts despite the Nikkei rising by some 1.09% in sterling terms so far this year. HSBC analyst Paul Locke said Japanese shares have fared relatively well on a year-to-date basis, allowing both large and small-cap Japan sector trusts to post NAV gains over the past month, with an average cap weighted return of 6%. 'With discounts at least in part a reflection of customer appetite, earlier indigestion suffered by those investors exposed to the Japanese market appears to be behind the relatively wide risk premium being attached to such t...

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