Equity fund that invests in Japanese companies
Evli Japan Fund is an equity fund that invests its assets primarily in Japanese companies. The Fund’s investment strategy emphasizes underpriced companies that generate cash flow and have strong debt coverage. The fund is not subject to restrictions concerning index or sector.
ESG factors are integrated into the fund’s investment decisions, and the fund follow Evli's general exclusion practices. The fund’s investments are monitored for violations of UN Global Compact norms and the Climate Change Principles, and the fund engages with the companies it invests in or excludes them if violations are detected. The fund's ESG indicators are reported in a fund-specific ESG report, which is updated four times a year.
The portfolio is managed by
Investment Objective and Risks
The aim is to earn a return which, in the long term exceeds the return of the benchmark index.
As the fund's assets are invested in equities or equity-linked securities, the fund unit value can fluctuate significantly within a short period. The fund's investments carry an exchange rate risk.
The Fund’s return was 0.3% in January, while the return of the benchmark index was 0.3%. The Fund’s return since 30.9.2011 (when present management took over) was 7.8% p.a., while the benchmark return was 9.4% p.a.
By sector, the net effect of stock selection on the return differential was slightly positive. The most beneficial selection effects came from consumer discretionary and health care, and the most harmful ones from information technology and industrials. Effects of the individual sector weights on the relative return were small and, as a whole, marginally negative. By stock, the most positive attribution effects came from our investment in PAL Group, from Toyota Motor not being in the portfolio, and from our investment in BML. The bottom attributors were MCJ, Fukui Computer, and Toho.
We invest in underpriced companies that generate cash flow and have strong debt coverage. There are no benchmark, sector, geographical or market cap constraints within the investment universe.
|Type of fund||Equity fund investing in Japan (UCITS)|
|Investment activity began||25.08.2005|
|Current strategy since||30.09.2011|
|Benchmark index||MSCI Japan TR Net|
|Profit distribution||Fund units are divided into A and B units. Profit share of at least 4% is distributed on A units annually.|