Portfolio has altered the way it runs its Japan fund of funds in a bid to capture strong investment ...
Portfolio has altered the way it runs its Japan fund of funds in a bid to capture strong investment themes in the market earlier, writes Leo Bland.
The group has moved to running Portfolio Japan using a momentum analysis approach to selecting holdings. This approach looks to pick funds which deliver performance momentum and which have identified and invested in a strong investment theme.
Portfolio is analysing Japanese fund performance over three month rolling periods in a bid to select the funds delivering accelerating growth. Portfolio said that this analysis will help its Japan product better capture trends such as the strong performance posted by smaller companies funds last year. The process is also designed to weed out funds which are losing performance momentum, with this acting as a sell discipline.
Portfolio Japan has radically restructured its holdings on the back of the introduction of momentum analysis, increasing the number of funds held from eight to 10 and selling out of seven funds.
Baillie Gifford Japanese was the only fund retained after the restructuring with funds including S&P Japan Growth, Fidelity Japan Special Situations and HSBC Japanese Smaller Companies being sold. Portfolio Japan has bought into nine funds as part of the restructuring including CCS Japanese Growth.
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