Investment management boutique J O Hambro Capital Management (JOHCM) has announced its intention to launch a new fund targeting Japan's growing dividend culture.
Investment management boutique J O Hambro Capital Management (JOHCM) has announced its intention to launch a new fund targeting Japan’s growing dividend culture.
The JOHCM Japan Dividend Growth Fund will be managed by experienced Japanese equities investors and JOHCM veterans Scott McGlashan and Ruth Nash. Unlike the existing JOHCM Japan Fund, which has a pronounced small and mid-cap bias, the new fund will be a large-cap product and will incorporate a blend of dividend growth and dividend yield.
This addition to JOHCM’s Ireland-registered OEIC range is scheduled to launch at the end of Q1 2014, when more details will be made available.
Scott McGlashan, senior fund manager, said: “The Japanese market has had a huge rally over the past year, but we believe that this is merely the beginning of a multi-year bull market. To date, the rally has been driven almost entirely by foreigners. However, we expect that domestic investors will play a bigger role from now. As domestic involvement increases, interest in dividends will grow.”
Ruth Nash, senior fund manager, continued: “A dividend culture is emerging in the Japanese equity market. While pay-out ratios in Japan still lag the global average, this is likely to change as companies attempt to cultivate long-term shareholders by increasing dividends.”
The existing JOHCM Japan Fund, which is ranked within the top decile of the IMA Japan and Lipper Offshore Equity Japan combined universes since its launch in May 2004, is soft-closed to new investors.