Schroder Tokyo Fund. Interim Short Report 29 February 2016 to 31 August 2016

Transcription

1 Schroder Tokyo Fund Interim Short Report 29 February 2016 to 31 August 2016

2 Review of Investment Activities From 26 February 2016 to 31 August 2016, the price of Z Accumulation units on a selling price to selling price basis rose 18.60%. In comparison, the Tokyo Stock Exchange First Section Index generated a total return of 19.59% 1 in sterling terms. 1 Source: Thomson Reuters Datastream. The Japanese stock market rose slightly during the period and sterling based investors also benefitted from the strength of the Japanese currency. The Bank of Japan maintained its aggressive monetary policy and the government announced a significant supplementary budget in an attempt to provide a fiscal stimulus to the domestic economy. The fund s leading contributor over the period was games consoles manufacturer Nintendo, as its share price spiked sharply higher following the release of the Pokémon Go mobile game in which Nintendo has a minority stake. Meanwhile, the largest fund detractor was Japan Airlines with its shares declining on the stronger yen and worries over its impact on international inbound tourist arrivals. Our overweight position in Santen Pharmaceutical also detracted from performance. Looking ahead, the short term the focus remains very firmly on the direction of economic policy in Japan. Equity investors are also digesting the implications of the decision by the Bank of Japan to increase its purchase of ETFs to an annual rate of JPY 6 trillion. Although macro policies still dominate sentiment there is clearly room for more focus on individual company valuations and this may be reinforced by an improvement in the outlook for corporate profits over the next few quarters. Fund Manager: Andrew Rose

3 Fund Information Interim Final Accounting dates 31 August 28 February Revenue allocation date 30 April For the period For the year Ongoing charges figure to to A Income units 1.66% % A Accumulation units 1.66% % GBP Hedged A Income units 1.66% % GBP Hedged A Accumulation units 1.66% % GBP Hedged L Accumulation units 0.84% % GBP Hedged Z Income units 0.91% % GBP Hedged Z Accumulation units 0.91% % H Income units 0.66% % H Accumulation units 0.66% % L Income units 0.84% % L Accumulation units 0.84% % S Income units 0.54% % Z Income units 0.91% % Z Accumulation units 0.91% % 1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period. Performance Record Net Asset Net Asset Value as at Value as at Net Asset Value Fund performance pence per unit pence per unit % change A Income units A Accumulation units GBP Hedged A Income units GBP Hedged A Accumulation units GBP Hedged L Accumulation units GBP Hedged Z Income units GBP Hedged Z Accumulation units H Income units H Accumulation units L Income units L Accumulation units S Income units Z Income units Z Accumulation units

4 Performance Record (continued) 3 months 6 months 5 years Schroder Tokyo Fund 18.16% 18.60% 83.05% Tokyo Stock Exchange First Section Index 15.02% 19.59% 76.22% Fund Source: Z Accumulation units on a selling price to selling price basis to Index Source: Thomson Reuters Datastream, total return in sterling terms to The performance of hedged unit classes may differ from other unit classes of the fund because the return on unhedged unit classes is based on both the performance of the fund s investments and the performance of the portfolio currency relative to sterling whereas the return on a hedged unit class is based only on the performance of the fund s investments. A Accumulation GBP Hedged Unit price range A Income units units A Income units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 28 February p p p p p p August GBP Hedged GBP Hedged A Accumulation L Accumulation GBP Hedged units units Z Income units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 28 February p p p p p p August GBP Hedged Z Accumulation H Accumulation units H Income units units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 28 February p p p p p p August

5 Performance Record (continued) L Accumulation L Income units units S Income units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 28 February p p p p p p August Z Accumulation Z Income units units Highest Lowest Highest Lowest Financial year to buying selling buying selling 28 February p p p p August Net revenue A Accumulation GBP Hedged GBP Hedged A Accumulation Financial year to A Income units units A Income units units 28 February pence per unit pence per unit pence per unit pence per unit Nil 1 Nil Nil August 2016 Nil Nil Nil Nil GBP Hedged GBP Hedged L Accumulation GBP Hedged Z Accumulation Financial year to units Z Income units units H Income units 28 February pence per unit pence per unit pence per unit pence per unit Nil August 2016 Nil Nil Nil Nil H Accumulation L Accumulation Financial year to units L Income units units S Income units 28 February pence per unit pence per unit pence per unit pence per unit 2014 Nil 3 Nil 4 Nil August 2016 Nil Nil Nil Nil

6 Performance Record (continued) Z Accumulation Financial year to Z Income units units 28 February pence per unit pence per unit August 2016 Nil Nil 1 The unit classes were launched on 1 July The unit class was launched on 9 May The unit classes were launched on 6 January The unit classes were launched on 1 October The unit class was launched on 31 January There was no distribution as the total amount distributable was below de minimis. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. Portfolio Information % of net % of net assets assets Spread of as at as at investments Oil & Gas Basic Materials Industrials Consumer Goods Health Care Consumer Services % of net assets as at Major holdings Toyota Motor 4.53 KDDI 3.56 Sumitomo Mitsui Financial Group 3.54 Bridgestone 3.35 Sompo Japan Nipponkoa Holdings 3.20 Nippon Telegraph & Telephone 3.12 TDK 2.95 East Japan Railway 2.94 SK Kaken 2.68 Mitsui & Co 2.53 % of net % of net assets assets as at as at Telecommunications Utilities Financials Technology Japanese Yen Denominated Derivatives 0.23 (1.28) Net other assets % of net assets as at Toyota Motor 4.21 Bridgestone 3.59 KDDI 3.51 East Japan Railway 3.43 Nippon Telegraph & Telephone 3.32 Sompo Japan Nipponkoa Holdings 3.09 Sumitomo Mitsui Financial Group 2.98 Mitsui & Co 2.51 Japan Airlines 2.50 HI-LEX 2.37

7 Investment Objective & Policy The fund s investment objective is to achieve capital appreciation through participation in the growth of the Japanese economy. Investment will be based primarily on Japan s economic strengths, such as its manufacturing industry (in particular on those parts of it that are demonstrating an ability to exploit newly emerging technology) and on sectors benefiting from structural change in the economy. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments. Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward The risk category was calculated using historical performance data and may not be a reliable indicator of the fund s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund invests in assets which are exposed to currencies other than sterling. For non-hedged unit classes exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. There is no guarantee that the hedging strategy applied in hedged unit classes will entirely eliminate the adverse effects of changes in exchange rates between the base currency and the portfolio currency. In addition, it should be noted that hedging transactions will be entered into whether or not the currency of a hedged unit class is declining or increasing in value in relation to the base currency or portfolio currency. Hedged unit classes aim to provide investors with a return correlated to the portfolio currency performance of the fund by reducing the effect of exchange rate fluctuations between the base currency and the portfolio currency. As it is not possible to legally segregate unit classes liabilities from those of other unit classes in the fund, there is a risk that, in certain limited circumstances, the hedging transactions undertaken in relation to a hedged unit class could result in liabilities which might affect the net asset value of the other unit classes in the fund.

8 Risk Profile (continued) The fund invests solely in the securities of a particular country. There may be a greater risk than investing in funds that hold securities in a range of countries. For these reasons, the purchase of units should not normally be regarded as a short term investment. Report & Accounts This document is a short report for Schroder Tokyo Fund for the period ended 31 August The long form Report & Accounts for the fund are available on our website or upon written request to Schroders, FREEPOST, RLTZ-CHSY-HBUT, PO Box 1102, Chelmsford, Essex CM99 2XX. Other Information The information contained in this report is designed to enable unitholders to make an informed judgement on the activities of the fund during the period it covers and the results of those activities at the end of the period. For more information about the activities and performance of the fund during this and previous periods, please contact the Manager. The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. For investors security, calls to Schroder Investor Services may be recorded. Manager: Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Investment Adviser: Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Trustee: J.P. Morgan Europe Limited, Chaseside, Bournemouth BH7 7DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Independent Auditors: PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX. For further literature please contact Schroder Investor Services on or at investorservices@schroders.com, or visit our website at Issued in October 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: England. Authorised and regulated by the Financial Conduct Authority. w35659 MR050BI16