Fact sheet: CF Morant Wright Nippon Yield

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
JAPANESE EQUITIES
Sector
UT Japan
Fund type
OEIC
Primary aim
GROWTH & INCOME
Why Money Observer Rates CF Morant Wright Nippon Yield

Rated Fund 2013-2017. Tapping into increasing dividends

An attraction of this fund is that it is run by a management group that concentrates exclusively on investing in Japan. It is also one of the few Japan funds with an income orientation and, at just under 2 per cent, has one of the highest yields in the sector. It pays income half yearly.

Although income and income growth over the long term are the managers' primary objectives, another plus for investors concerned about market volatility is that capital protection is a cornerstone of the managers' approach. They are a six-strong team led by the company founders Stephen Morant and Ian Wright.

They describe themselves as value investors with a keen interest in preserving capital. They seek to generate absolute returns by investing in undervalued Japanese companies that have strong balance sheets and sound business franchises. Their stock selection is based on fundamental analysis.

They start with the balance sheet and emphasise ratios including price to book value and enterprise value to operating profit. They look to identify companies with share prices offering room for significant appreciation over the long term, but without undue risk.

The managers regularly meet Japanese companies both in London and Japan, and have commented on the welcome improvement in corporate governance.

They pointed out recently that economic developments are positive and that, importantly from their perspective, the trend towards increased dividends and share buybacks seems to be continuing. As a result they are optimistic about the outlook for the fund.

3 Year Performance
Fund Performance66.6%
Average of Rated Funds Group106.8%
Sector Performance56%
Fund information
Fund name
LF Morant Wright Nippon Yield B Acc
Fund manager company
Link Fund Solutions Ltd
Fund type
OEIC
Fund manager
No data available.
Accolades
Fund objective
To achieve longer term income growth whilst preserving and growing the capital value through diversified investment in Japanese equities and related instruments (convertible bonds and warrant bonds). There may be times in light of adverse conditions when the investment manager will wish to hold positions in collective investment schemes, money market instruments and warrants.
Benchmark
  • Topix
Investment style
None
Investment method
Shares
Quick stats
1 Year return
8.9%
1 Year rank in sector
18/44
Sector
UT Japan
Yield
2.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.19%
Fund size
£555m (£407m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
111
Mid price
437.83
Top in this sector
Fund name1 Year
Legg Mason IFJaEq35.3%
First State Jap Focs28.7%
Fidelity Japan Smaller Comp22.1%
JPM Japan19.7%
Fidelity Institutional Japan19.7%
...more in UT Japan

Performance snapshot

Holdings snapshot

  • Japan95.4%
    Money Market4.6%
  • Transport Equipment15.2%
    Building & Construction14.5%
    Basic Materials11.5%
    Banks10.4%
    Trade9.3%
  • Japanese Equities95.4%
    Money Market4.6%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-7.7%-2.1%2.3%8.9%66.6%112.1%
Sector-7%-1.2%3.6%9.5%56%94%
Rank within sector38 / 4729 / 4725 / 4618 / 446 / 407 / 37
Quartile4th3rd3rd2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-5.5%18.6%29.3%21.4%6.3%
Sector-3.6%17.7%24%15.8%0.8%
Rank within sector45 / 4715 / 446 / 436 / 402 / 38
Quartile4th2nd1st1st1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
4.05
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.89
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.35
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
11.95
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.88
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.46
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.84
Price movement
52 week high483.04
52 week low387.95
Current bid price-
Current offer price-
Current mid price437.83
Region
1Japan95.42%
2Money Market4.58%
Industry sector
1Transport Equipment15.21%
2Building & Construction14.51%
3Basic Materials11.47%
4Banks10.43%
5Trade9.28%
6Financials7.51%
7Information Technology6.8%
8Machinery5.68%
9Electronic & Electrical Equipment5.22%
Asset type
1Japanese Equities95.42%
2Money Market4.58%
Individual holdings
1SUMITOMO MITSUI TR HLDGS INC2.84%
2MITSUBISHI UFJ FINANCIAL GROUP2.8%
3SUMITOMO MITSUI FINANCIAL GROUP INC2.72%
4TOKIO MARINE HLDGS INC2.61%
5FUJI MEDIA HLDGS INC2.59%
6TOKAI RIKA CO2.4%
7TOYOTA INDUSTRIES CORP2.4%
8TOYOTA MOTOR CORP2.39%
9HONDA MOTOR CO2.34%
Management
Fund manager group
Capita Financial Managers
Fund manager company
Link Fund Solutions Ltd
Fund type
OEIC
Fund objective
To achieve longer term income growth whilst preserving and growing the capital value through diversified investment in Japanese equities and related instruments (convertible bonds and warrant bonds). There may be times in light of adverse conditions when the investment manager will wish to hold positions in collective investment schemes, money market instruments and warrants.
Benchmark
  • Topix
Investment style
None
Investment method
Shares
Fund manager
No data available.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
LF Morant Wright Nippon Yield A
Initial charge5%
Annual charge1.5%
Min single investment£5,000
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.91%
Bid price-
Offer price-
Mid price344.96
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeDDL2
LF Morant Wright Nippon Yield A Acc
Initial charge5%
Annual charge1.5%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.69%
Total expense ratio (TER)1.91%
Bid price-
Offer price-
Mid price417.6
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeKJO1
LF Morant Wright Nippon Yield B
Initial charge5%
Annual charge1%
Min single investment£100,000
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)1.19%
Total expense ratio (TER)1.41%
Bid price-
Offer price-
Mid price361.75
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeDDL3
LF Morant Wright Nippon Yield B Acc
Initial charge5%
Annual charge1%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.19%
Total expense ratio (TER)1.41%
Bid price-
Offer price-
Mid price437.83
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeKJO2
Data provided by

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.