Japan Small Cap Fund (UCITS) Class A JPY

Transcription

1 Satoshi Marui, Chief Portfolio Manager, has been managing Japanese equities for over 20 years. He has been dedicated to, and responsible for the strategy since its inception in Performance 1 5.0% Japan Small Cap Fund (UCITS) Class A JPY Portfolio Overview Factsheet as at 31st August 2018 Benchmark: Non benchmark (Ref. benchmark : Russell/Nomura Small Cap Index) Universe: All listed small cap equities* and IPOs in Japan Investment method: Bottom-up, research intensive Source of return: Stock selection Cash holdings : Normally Max 10% Strategy inception: Mar Fund inception: 4 th Apr Currency: JPY Bloomberg Ticker: JSCAJPY ISIN: IE00BLD2G235 Investment Philosophy The Japanese small cap market is frequently overlooked by mainstream investors. We believe that superior research coupled with a true understanding of Japanese small caps can generate consistently better returns than other asset classes. Investment Objective The strategy aims at long term capital growth through a robust investment process focusing on upside potential and change in earnings trend. Investment Strategy An intensive, bottom-up fundamental research strategy which provides an optimal portfolio of Japanese small cap stocks. *Defined by companies with a market cap of less than JPY300bn Class A JPY **** 2013 (from April) % % % 25.77% % 3.86% % 47.15% 2018 (to August) 1.99% 2.09% Cumulative 75.58% % Asset Under Management (For overall UCITS) Class A JPY **** 26.88% 12.20% 13.13% -5.61% 16.08% 9.69% 4.78% -0.92% 30.18% 16.97% -4.36% 6.45% % 76.10% USD million -5.0% Last 1 month -1.36% -1.35% -1.89% 0.55% Last 3 months -1.84% -1.81% -2.58% 0.77% Last 6 months -2.52% -2.44% -2.04% -0.40% Last 1 year 17.68% 17.85% 9.22% 8.63% -1 Last 3 years (annualised) 20.92% 21.08% 10.81% 10.27% Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Class A JPY **** Last 5 years (annualised) % 15.23% 5.43% ** Figures calculated against Class B JPY *** The fund was launched on 4th Apr The benchmark returns are based on a start date of 3rd Apr **** Calculation of Class A JPY return started from 27th May Fund Performance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % -6.12% 14.10% -1.62% 1.47% -3.47% 0.75% -4.46% 5.64% 2.62% -1.33% 2.16% 3.72% % 2.95% 1.89% -0.27% 7.10% 4.11% 1.64% 5.15% 3.80% 2.85% 4.98% 2.96% 46.93% % 1.85% -1.22% -2.46% 3.07% 0.72% -1.20% -1.36% % Source: Sumitomo Mitsui Trust Bank, Ltd. Class B JPY*** Class B JPY*** Russell / Nomura Small Russell / Nomura Small Excess Returns** Excess Returns** Exposure by Sector 0% 10% 20% 30% 40% Consumer Discretionary 14.0% Consumer Staples 6.5% Energy Financials 3.8% Health Care 10.4% Industrials 23.1% Information Technology 32.3% Materials Real Estate Telecommunication Services Utilities Others Cash 2.4% 1.9% 5.7% Top 10 Holdings Ticker Name 6235 JP OPTORUN 5911 JP YOKOGAWA BRIDGE HOLDINGS 3549 JP KUSURI NO AOKI HOLDINGS 2398 JP TSUKUI 7613 JP SIIX 2170 JP LINK AND MOTIVATION 1417 JP MIRAIT HOLDINGS 3445 JP RS TECHNOLOGIES 3076 JP AI HOLDINGS 6908 JP IRISO ELECTRONICS Note: Weightings are calculated including cash. Weight 2.62% 2.33% 2.29% 2.29% 2.25% 2.24% 2.13% 2.13% 2.07% 2.03% Note: The above sectors are based on Global Industry Classification Standard(GICS). Companies without GICS sector classification are categorised into Others. Sumitomo Mitsui Trust International Limited Source: Sumitomo Mitsui Trust Bank, Ltd., NRI, WM Reuters

2 Exposure by Size 0% 20% 40% 60% 80% 100% Large Cap Mid Cap 5.0% Small Cap 89.3% Cash 5.7% Note: Size is based on TSE classification standards. Fund Information Fund name ("Fund" - "Sub-Fund") Domicile Investment vehicle Manager and administrator SuMi TRUST Investment Funds - Japan Small Cap Fund Ireland UCITS, Unit Trust SMT Fund Services (Ireland) Limited Investment manager Distributor Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Trust International Limited Sumitomo Mitsui Trust (Hong Kong) Limited Trustee SMT Trustees (Ireland) Limited Custodian / Global sub-custodian Sumitomo Mitsui Trust(UK) Limited / Brown Brothers Harriman Auditors KPMG Chartered Accountants Sub-Fund inception date(class A JPY) 27th May Currency JPY Holdings Fees Typically stocks Investment Management Fee: Class A / 0.75%, Class B / 0.60%, Class C / 0.50%, Retail Unit / 1.50% For more information about other charges, please see the Fund's Prospectus. Class A : JPY 1,000,000 / other currencies 10,000 Min. initial investment Class B : JPY 1,000,000 Class C : USD 10,000 Retail Unit : No minimum initial subscription More information of this strategy can be found in the following website: Mercer GIMD: evestment Alliance: Disclaimer This marketing communication is issued by Sumitomo Mitsui Trust International Limited ( SMTI ). SMTI is authorised and regulated by the United Kingdom s Financial Conduct Authority (the FCA ), whose address is 25 The North Colonnade, Canary Wharf, London, E14 5HS, United Kingdom. This marketing communication has been made available to you only because SMTI has classified you as a professional client in accordance with the FCA s rules. If you have received this marketing communication from a source other than SMTI, you should contact SMTI before using it or relying on it. You must not send this marketing communication to any other person without first having received written approval from SMTI. The information contained in this marketing communication (the Material ) is being made available for information purposes only and is designed to provide information on the investment services which SMTI may offer to clients. Nothing in the Material amounts to or should be construed as an actual offer by SMTI to provide any investment services to any person. If SMTI agrees to provide any investment services to any person, those services will be the subject of a separate written agreement between SMTI and that person. Furthermore, the Material has not been prepared with any consideration of the individual circumstances of any person to whom it is communicated. Accordingly, it is not intended to, and does not, constitute a personnel recommendation in relation to the purchase or sale of, or exercise of any rights in relation to, any financial instruments or advice in relation to any investment policy or strategy to be followed. The Material also does not contain the results of any investment research carried out by SMTI and is not intended to amount to a financial promotion of any particular financial instrument which may be referred to in it. While SMTI uses all reasonable endeavours to ensure the Material is accurate, it has not been prepared with a view to any person relying on it. Accordingly, SMTI accepts no responsibility for any loss caused to any recipient of this document as a result of any error, inaccuracy or incompleteness in the Material, nor for any error in the transmission or receipt of this communication. Contact: Akimichi Oi Head of Investment Management Department Sumitomo Mitsui Trust International Limited, 155 Bishopsgate London EC2M 3XU U.K. Direct: Fax : info@smtil.com Sumitomo Mitsui Trust International Limited 2018

3 CAPITAL AT RISK: All investments involve risk. The value of your investment and the income from it will fluctuate and a loss of capital may occur. INVESTMENT OBJECTIVE To achieve long term capital growth by making at least two-thirds of its total investments in equity and equity-related investments in small Japanese companies, i.e. companies incorporated in Japan or companies whose assets, products or operations are in Japan. At least 50% of the Sub-Fund's investments will be in companies whose market capitalisation at the time of acquisition is less than JPY 400 billion. KEY FACTS Asset Class Benchmark Equity MSCI Japan Small Cap Daily Total Return Net Index Fund Inception Date 01 Jan 1994 Fund Base Currency USD Fund Size (million) US$ No. of Securities 60 Fund Type Distribution PORTFOLIO MANAGER(S) Midori Katsumi Portfolio Manager Noriko Umino Portfolio Manager UCITS No Distribution: Dividends Reinvested HIGHLIGHTS Access to attractive small-cap growth drivers from companies with the potential to benefit from Japan s stability On-the-ground presence in Japan, providing direct access to overlooked opportunities, while carefully monitoring risk Consistent and disciplined research framework focused on growth and value styles across countries, regions and sectors ANNUALIZED PERFORMANCE IN SHARE CLASS CURRENCY (%) Fund Benchmark Month 3 Months 1 Year 3 Years 5 Years Since Inception CALENDAR YEAR PERFORMANCE IN SHARE CLASS CURRENCY (%) 2018 YTD Fund Benchmark The Fund performance is calculated net of fees on NAV to NAV in JPY with dividends reinvested. Returns over one year are annualized. Performance is representative of Y3 class in JPY. Past performance is not indicative of future results. 7.3 FUND ANALYSIS PORTFOLIO CHARACTERISTICS RATING(S) Morningstar Information Ratio Sharpe Ratio Alpha (%) Tracking Error (%) Standard Deviation (%) Beta R Squared (%) 3 YEARS Wtd Avg Mkt Cap US$ million P/E Ratio P/B Ratio ROE (%) Debt to Equity Ratio 1, SHARE CLASS INFORMATION (For a full list of available share classes, please visit pinebridge.com/funds) Share Class Inception Date Price as at 31/08/18 Min Investment Management Fee Service Fee ISIN Bloomberg Y3 JPY 02 Apr 2001 JPY JPY 125 million 1.00% 0.00% IE PBIJSYI

4 SECTOR BREAKDOWN (%) FUND BENCHMARK Industrials Information Technology Consumer Discretionary Consumer Staples Materials Real Estate Health Care Financials Other Cash TOP TEN HOLDINGS (%) FUND RS Technologies Co. Ltd. 3.4 Peptidream Inc. 3.4 Toyobo Co., Ltd. 3.4 Casio Computer Co., Ltd. 3.3 Shima Seiki Mfg. Ltd. 3.3 BayCurrent Consulting, Inc. 3.3 Ain Holdings Inc. 3.0 Mirait Holdings Corporation 3.0 H.I.S.Co., Ltd. 3.0 Sankyu Inc. 3.0 KEY RISKS Potential investors should consider the following key risks before investing in the Sub-Fund: Equity Risk: The value of shares and securities related to shares may fall due to issuer related issues, financial market dynamics and world events including economic and political changes. Market Volatility Risk: All types of investments and all markets are subject to market volatility based on prevailing economic conditions. Price trends are determined mainly by financial market trends and by the economic development of the issuers, who are themselves affected by the overall situation of the global economy and by the economic and political conditions prevailing in each country. As securities may fluctuate in price, the value of your investment may go up and down. Investment Loss Risk: Investments may decline in value and investors should be prepared to sustain a total loss of their investment. FDI Risk: The prices of FDI can be highly volatile. In addition, the use of FDI also involves certain special risks depending on the type of FDI, including but not limited to correlation risk, counterparty credit risk, legal risk, settlement risk, margin risk, as well as other possible risks that may arise. The risk factors described above should not be considered an exhaustive list of risks, which potential investors should consider before investing in the Sub-Fund. For more details on the fund s potential risks please read the Prospectus and Key Investor Information Document at pinebridge.com/funds

5 About PineBridge is a private, global asset manager with a focus on active, high conviction investing PineBridge Investments pinebridge.com/funds Independent since 2010, the firm draws on decades of experience managing money for sophisticated investors Global client base that includes institutions and intermediaries Investment capabilities inmulti-asset,fixed income, equities and alternatives MULTI-ASSET l FIXED INCOME l EQUITIES l ALTERNATIVES Data and information as of 31 August 2018 sourced from PineBridge Investments unless stated otherwise, and is subject to change. Past performance is not indicative of future results. Any views represent the opinion of the manager and are subject to change. PineBridge Japan Small Cap Equity Fund (the "Fund") is a sub-fund of PineBridge Global Funds, an Irish domiciled UCITS umbrella fund, authorized and regulated by the Central Bank of Ireland. The Fund was formed as a successor fund to AIG Japan Small Companies Fund plc (the "Company") following a scheme of amalgamation with the Company and was launched on 7 Apr PineBridge Investments Japan Co., Limited is the Investment Manager to the Fund and also acted in this capacity for the Company. Performance is representative of Class Y3 in JPY of the Company up to 7 Apr 2006, and of Class Y3 of the Fund from that date. From inception to 30 Jun 2008, the benchmark was the Tokyo Stock Exchange Second Section Stock Total Return Index. From 1 Jul 2008, the benchmark was changed to MSCI Japan Small Cap Daily Total Return Net Index. Past performance is not indicative of future results. Any views represent the opinion of the manager and are subject to change. Source for statistics: Zephyr StyleAdvisors. Source for characteristics: Factset. Investment involves risks including the possible loss of principal invested and risks associated with investment in emerging and less developed markets. PineBridge Investments is not soliciting or recommending any action based on this material. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. Fund allocations are inclusive of cash. This document is intended for distribution only to existing and prospective investors for whom it is suitable and does not constitute an offer of units. Its general circulation may be restricted by law. The Fund is not available for investment in the U.S. or to or for the account of U.S. persons. In the UK, this document is a financial promotion solely intended for professional clients as defined in the FCA Handbook and has been approved by PineBridge Investments Europe Limited. Investors should not assume that this material has been reviewed or endorsed by any regulatory authority. Copies of PineBridge Global Fund s Prospectus, the Key Investor Information Document (KIID), and the most recent financial statements, which include risk factors and terms and conditions and which should be read before investing, may be obtained free of charge in Ireland from PineBridge Investments Ireland Limited, and in Germany from BHF-BANK AG, Bockenheimer Landstraße 10, Frankfurt. PineBridge Investments is a registered trademark proprietary to PineBridge Investments IP Holding Company Limited. This material is issued by: PineBridge Investments Ireland Limited, 78 Sir John Rogerson s Quay, Dublin 2, Ireland. Morningstar Rating Source: Morningstar Essentials. Copyright 2018 Morningstar, Inc. All Rights Reserved. Morningstar Rating in the JAPAN SMALL/MID-CAP EQUITY Morningstar Category. Morningstar Performance ratings shown reflect the share class performance shown unless noted otherwise. Source Benchmark Attribution: MSCI. MSCI makes no express or implied warranties or representation and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.