Investment boutique JO Hambro Capital Management is set to launch a dividend-focused fund for its Citywire AA-rated Japan equity specialists, the group has announced.
The JOHCM Japan Dividend Growth fund will be Dublin-domiciled and launched at the end of Q1 2014.
The fund is designed to capitalise on Japan’s growing dividend culture and will operate with a large-cap focus. It will invest in a blend of dividend growth and dividend yield.
This large-cap bias differs from the existing fund that Nash and McGlashan run, which has a focus on small- and mid-cap investments.
Commenting on the launch, McGlashan 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.’
The JOHCM Japan B GBP fund has returned 52.8% over the three years to the end of January 2014. This compares with a rise of 43.39% by its Citywire benchmark, the Topix TR, over the same period.