Sector Fund Range

Omnis Japanese Equity Fund

Investment Manager

Schroder Investment Management

Fund Managers

Andrew Rose and Masaki Taketsume

Key fund facts

  • Stock picking- Focusing on stock-specific risk helps the firm identify what it believes is the fair value of mispriced investment opportunities.
  • High standard of research- the standard of research output is consistently high, based on a broad programme of interaction with company management in Japan and London.
  • Disciplined investment process- the fund adheres to a disciplined investment process which ensures its contrarian views are reflected in the portfolio’s construction.

Investment objective

The Fund aims to achieve a return consisting of both income and capital growth which, after all fees and expenses, exceeds that of the FTSE World Japan TR index over the medium to long term (defined as 5 to 10 years).

Investment policy

The Fund intends to invest at least 80% in the equity securities of Japanese companies, defined as those which are domiciled, incorporated or have a significant exposure to Japan. The Fund may also invest in other transferable securities (for example, equity securities of other international companies), units in collective investment schemes (including schemes managed and operated by the ACD or its associates), money market instruments, warrants, cash and near cash deposits as detailed in the Prospectus.

It is envisaged that the investment portfolio of the Fund will be concentrated, typically comprising between 65 and 85 stocks.

Derivatives may be used for the purposes of hedging and efficient portfolio management.

Investment process overview

The fund invests in Japanese companies of all sizes with strong potential earnings growth and visibility over the long term. These firms also tend to exhibit a sustainable competitive advantage, such as a technological edge, patents or a dominant market share.

The fund’s investment philosophy is based on the idea that markets are inefficient, and it is easier to capture those inefficiencies at the stock level since that is where the greatest research advantage exists.

The managers believe the underlying driver of returns is stock-specific risk. Accordingly, their research focuses on long-term value creation and strength of franchise, which helps to identify mispriced investment opportunities based on a stock’s price and earnings-driven multiples relative to its fair value P/E ratio. This strategy can be applied at all stages of the economic cycle.