Invertia three investment funds in Japan: an attractive lag market by valuations

It is not an easy year for Japan.The country has remarkably lagged in the rhythm of vaccination of its population with respect to other developed countries, demonstrating in a fourth wave of infections and in the prolongation of social restrictions and the state of emergency.

Actually, Japan has good reasons for the slow progress of its fight against COVID-19.In the 1970s, a series of scandals with vaccines put the ribbon very high at medication approvals.Local trials are a filter through which foreign medicines have to pass, so bringing US and European vaccines to their market has been a painfully slow process.

Therefore, after a strong recovery in the second half of 2020, in 2021 the economy has back back.GDP fell almost 4% annualized in the first quarter and market consensus on possible zero growth in the second quarter could be a bit optimistic.The manufacturing industry is going better than services, but even this has recently slowed down, located near the 50's mark, which separates the growth of the contraction.

Assessment gap

All this has been reflected in the behavior of Japanese actions so far this year.China has only worsened, who fights with the lack of stimuli.In recent months a gap between the east and west has been opened in global markets.

In line with this behavior of the Japanese economy, the funds that invest in traded companies in the country of the rising sun are revalued by means 7.1% in the year, at the tail of the Variable Income Fund Group available for commercialization in commercialization inSpain.A selection of funds from the Vdos of International Variable Japan has been.000 euros.

The most profitable

Of this group of funds, the most profitable since last January is the HR class in eurotet euros - Japanese Equity Selection, with a revaluation of 14%.One year it obtains a 35.2%profitability, with a 16.5%volatility data.

Take as reference the MSCI Japan index, it offers investors the possibility of participating in the growth of the Japanese shares market.Invest at least two thirds of its total net assets in societies whose registered office is in Japan or that exercise an important part of their economic activity in the country.

The portfolio is composed of a limited selection of values that, in the opinion of the manager, have the most favorable perspectives.Among its highest positions we find shares of Toyota Motor (4.95%), Hitachi (4.58%), Mitsubishi UFJ Financial Group (4.07%), Asahi Group (3.28%) and Fujitsu (3.26%).Has a total assets of 1.320 million euros.Its participants support a fixed commission of 2.5% and 0.3% deposit.

5.7% is the profitability obtained by class and accumulation, with coverage in euros, by Fidelity Funds - Japan Aggressive.In the last annual period, 25.3%is revalue.

The fund manager, Nicholas Price, follows an ascending securities selection approach, seeking growth at fair value.The individual analysis of companies and contacts are key to this process.It gives preference to companies ignored and hidden, especially of small and medium capitalization, which are experiencing a change in their respective business activities.

Although Fidelity's exclusive analysis is a key factor in finding these opportunities, the manager also pursues his own investment ideas.In order to maintain profitability, follow a strict sales discipline, actively cutting positions and replacing them with new ideas.Take the Total Return Topix Index as management reference.

Its highest positions include NOF CORP (5.2%) shares, Misumi Group (4.9%), Keynce Corp (4.6%), Recruit Holdings (3.6%) and East Land CO (3.4%).It manages a patrimony of 282 million euros, a minimum investment of 2 being necessary.500 dollars (approximately 2.117 euros) to subscribe the class and accumulation with coverage in euros of this fund.Apply a fixed commission of 0.8% and deposit of 0.35%.

For investors willing to assume the risk of currency, the fund called in Japanese yen, privileged - Alpha Japan CAP Gains 9.1% for profitability in the year in its class M of capitalization.One year, 23.2% is revalued, with a controlled volatility fact of 12.7% that, as the previous one, positions it in the quintile five for such a concept.

Managed by Lombard Odier IM, it is a high conviction fund, advised by Alpha Japan Asset Advisors.It is proposed as a goal to beat the Topix T long -term index, selecting the actions to be included in its portfolio for its fundamental and long term merits.It is actively managed, to benefit from sectoral rotations and flow reversals, a characteristic of the Japanese variable rental market.

The strategy is opportunistic, emphasizing its analysis in an ascending approach, during the process of searching for investment opportunities throughout the capitalization spectrum.It allows flexibility in the selection, in terms of sector and style exhibitions, being able to invest in a number of between 55 and 80 high -conviction actions, with the first ten positions representing 30% or 40% of the assets.

Entre ellas encontramos acciones de Toyota Motor (4,5%), Sony Group (3,5%), Mitsubishi UFJ Financial Group (2,5%), Seven & I Holdings Co (2,3%) y Shin-Etsu Chemical (2,20%).A minimum contribution of 3 is required.000 euros to subscribe to the class M of capitalization in yen of this fund, which taxes its participants with a 0.85% fixed commission.

Pricing mismatches

As on other occasions, attractive valuations favor the Japanese market.Depending on the profits planned for the next 12 months, the Japanese market is significantly cheaper than the American and European.Japan's Pervate is about 14 times, compared to 16 in Europe and 20 in America.When comparing its book value, the difference is even more pronounced, with 1.3 times of Japanese assets, compared to more than 4 in the US.

This is, therefore, a good time to be interested in the Japanese market, when there is a mismatch between perspectives and valuation.This mismatch is surprising in Japan today.

***Paula Mercado es directora de análisis de Vdos

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