Royal & SunAlliance Investments is to launch Japan and Far East excluding Japan funds later this mon...
Royal & SunAlliance Investments is to launch Japan and Far East excluding Japan funds later this month, writes Leo Bland.
Royal & SunAlliance Japan Growth will be run by Jonathan Greenhill, an associate director of the group's Japanese equities team.
He will be assisted by Peter de Lacy, who has joined the equity team from Merrill Lynch where he was a portfolio analyst and assistant fund manager on the international equities desk.
Royal & SunAlliance Pacific Growth will be managed by Mike Hanbury-Williams. Both funds are Oeics and will be launched on 30 May. IFA commission on the funds is 3% initial and 0.5% renewal.
Hanbury-Williams is also taking over the management of Royal & SunAlliance's existing Far East including Japan fund. The portfolio was previously run by William Russell, who is being promoted to director of retail funds at the group.
Japan Growth will have a 50 to 60 stock portfolio and the top 10 holdings will make up around 25% of the portfolio. The fund will have exposure to companies such as Honda, Canon, Sony and Toshiba. Greenhill said: "We are mildly positive on Japan at the moment, as we believe Japanese industry is changing quite aggressively.
"We expect companies such as Toshiba to continue to do well. Japan is behind on the IT investment cycle and the lion's share of that kind of business will be taken up by companies like Toshiba. The portfolio will be underweight banks and overweight pharmaceuticals."
Pacific Growth will have a portfolio of between 60 and 80 stocks and Hanbury-Williams is looking to overweight Korea and Taiwan. The fund will also be overweight in Hong Kong and China in the belief this will be a strong growth area.
By contrast the fund will be underweight in the smaller Asian markets such as the Philippines, Indonesia and Thailand as Hanbury-Williams does not believe the process of reform has been going quickly enough.
The retail share class on both Oeic funds has an initial charge of 5% and an annual of 1.5%. Minimum investment is £1,000 lump sum or £50 per month.
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