8th Apr 2016 15:00
LONDON (Alliance News) - Schroder Japan Growth Fund PLC on Friday said it had underperformed its benchmark in its first half, on a weaker performance from the Japanese stock market.
The fund reported a fall in net asset value per share on a total return basis of 4.6%, compared to a 1.9% negative total return from its benchmark index.
Schroder Japan Growth Fund said that, unusually for its portfolio, the impact of the sector and sector positions were both "self-cancelling". Underexposure to defensive sectors such as food hurt the portfolio, offsetting positives from retail and telecoms stock selection.
"Uncertainties are heightened relative to the recent past particularly in relation to global economic activity and the impact of increasingly unorthodox Japanese monetary policy. The corporate profits outlook is also more blurred with the weak yen tailwind having reversed," the fund said in a statement.
"Amidst this confusing macro-economic environment, most Japanese companies have got on with the job of growing profits for the fourth year in a row, in many cases with higher dividends and/or share buybacks. The portfolio has had a difficult six months as market attention switched to defensive sectors," Schroder Japan Growth Fund said.
Shares in Schroder Japan Growth were up 3.2% at 136.26 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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