JPMorgan Japanese Investment Trust – Are we there yet?

Optimism driven by rapidly developing corporate governance reforms, a divergent economy cycle, and still-negative interest rates saw a dramatic rally in benchmark Japanese indices over 2023, with the TOPIX index climbing to its highest level in more than 30 years. With the rally driven by more value-focused sectors of the market, returns for the JP Morgan Japanese Investment Trust (JFJ) failed to keep pace for much of the year due to a portfolio more targeted towards high-quality growth stocks.

JPMorgan Japanese Investment Trust – Are we there yet?

Optimism driven by rapidly developing corporate governance reforms, a divergent economy cycle, and still-negative interest rates likely contributed to a dramatic rally in benchmark Japanese indices over 2023, with the TOPIX index climbing to its highest level in more than 30 years. The managers note that with the rally driven by more value-focused sectors of the market, returns for the JP Morgan Japanese Investment Trust (JFJ) failed to keep pace for much of the year due to a portfolio more tar

JPMorgan Japanese

The valuation of JFJ’s high-growth portfolio looks cheaper after last year’s sell-off…

JPMorgan Japanese Investment Trust – Backing the new Japan

JPMorgan Japanese Investment Trust (JFJ) has a large exposure to good quality companies that are at the forefront of the modernisation of the Japanese economy. The portfolio embraces businesses in robotics, ecommerce, digitalisation, healthcare, and renewables. It also backs some great Japanese brands and businesses that are helping the economy adapt to an ageing population. These are ‘growth’ stocks and, as we discussed in our last note, even though Japan has not, as yet, experienced the inter

JPMorgan Japanese Investment Trust – Backing the new Japan

JPMorgan Japanese Investment Trust (JFJ) has a large exposure to companies that are focused on the modernisation of the Japanese economy. The portfolio embraces businesses in robotics, ecommerce, digitalisation, healthcare, and renewables. It also backs Japanese brands and businesses that its managers think are helping the economy adapt to an ageing population. The majority of these stocks exhibit characteristics associated with growth stocks and, as we discussed in our last note, even though J

JPMorgan Japanese

JFJ’s portfolio of high-growth businesses looks cheap as sentiment improves…

Economic and Political Monthly Roundup January 2023

A collation of recent insights on markets and economies taken from the comments made by chairs and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.

Economic and Political Monthly Roundup January 2023

A collation of recent insights on markets and economies taken from the comments made by chairs and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.

JPMorgan Japanese Investment Trust - Unjustified selloff creates opportunities

A sharp selloff in the types of high-quality, growing companies favoured by JPMorgan Japanese Investment Trust (JFJ) has meant that the trust has given back much of its recent outperformance. The selloff mimics those of other countries such as the US and UK, but Japan is not afflicted by the high inflation or the threat of rising rates that triggered the stock market falls in other countries. JFJ’s managers are seeing opportunities to buy stocks that they favour on attractive valuations. They ar

JPMorgan Japanese Investment Trust - Unjustified selloff creates opportunities

JPMorgan Japanese Investment Trust (JFJ) has given back much of its recent outperformance. The managers select companies that they believe are high-quality and offer good growth prospects for JFJ’s portfolio. They say that these types of companies have experienced a sharp and unjustified selloff. They note that the selloff mimics those of other countries such as the US and UK, but Japan does not appear to be afflicted by the high inflation or the threat of rising rates that triggered the stock m

JPMorgan Japanese

JPMorgan Japanese’s (JFJ) managers, Nicholas Weindling and Miyako Urabe, have proven themselves uncompromising in the face of recent market volatility. The team remains committed to investing in Japanese growth companies, with a Portfolio of both large and small companies that can capitalise on the structural opportunities within Japan. The team aims to invest into the heart of ‘New Japan’, specifically in high-quality companies which offer the prospect of high growth.

Bright long-term future

JPMorgan Japanese Investment Trust (JFJ) had an impressive run of both absolute and relative performance going into and during the worst of the pandemic. However, once vaccines became a reality, the share prices of businesses that had struggled during lockdowns surged. These were often the types of company that the managers would not consider for JFJ’s growth- and quality-focused portfolio. Consequently, over the past 12 months, JFJ has produced decent returns, surpassing £1bn in assets, but has

Bright long-term future

JPMorgan Japanese Investment Trust (JFJ) had an impressive run of both absolute and relative (to its benchmark index and to competing trusts) performance going into and during the worst of the pandemic. However, once vaccines became a reality, the share prices of businesses that had struggled during lockdowns surged. These were often the types of company that the managers would not consider for JFJ’s growth- and quality-focused portfolio. Consequently, over the past 12 months, JFJ has produced d

Don’t fear the reaper

With market direction hard to call, we consider the case for taking a long- term view in the investment trust sector...

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

Morning Note – 29 February 2024

Jupiter Green

Hardman & Co Insight - Asset managers had a poor 2022

Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m