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The Markets
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The Markets
by Proactive
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Investments and investor services

Japan investment trusts in focus as Tokyo stocks hit 33-year high

As Japanese stocks rose to a new 33-year high, many investors will have been thinking about how best to tap into the Asian archipelago.

While Japan is often used as a warning to those who put too much faith in equities due to the economy's 'lost decade', with a moribund performance in the 90s and first decade of the new millennium, along with years of persistent deflation.

But investors in the country in the past decade have often enjoyed themselves and the Japanese stock market loaded with cash-rich companies, many of them world leaders, and a government working hard to deal with its demographic issues.

There are 11 London-listed investment trusts focused on Japanese companies, according to the Association of Investment Companies.

Six of these trusts are in the AIC's Japan sector and five are in the Japanese smaller companies sector.

Fidelity Japan Trust PLC (LSE:FJV) has the best 10-year record among the wider Japan trusts, with a total return of almost 130%, followed by Baillie Gifford Japan Trust and JPMorgan Japanese Investment Trust but up over 120%.

Over five years the Baillie Gifford fund has a negative record, while the Fidelity fund again is in the lead, up over 13%.

Among the small-cap funds, the Baillie Gifford Shin Nippon trust is far in the lead with a share price total return of almost 136% over 10 years, followed by JPMorgan Japan Small Cap Growth & Income on 87% and Atlantis Japan Growth Fund at 52.5%.

On a five-year basis the Baillie Gifford has the worst record, down 26%, with all three in negative territory.

Two newer small company trusts are also in the mix, with the AVI Japan Opportunity Trust coming up to its five year anniversary later this year, and the Nippon Active Value Fund (LSE:NAVF) launching in 2020. Both are the strongest performers over a one-year basis.

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