Jpmorgan Japan Smaller C... Share Discussion Threads

[deadly] 24/1/2021 11:15

Anyone care to start a new thread for this excellent trust with JSGI?

[panshanger1] 17/12/2020 10:23

Half year results out Great performance from this under appreciated trust !!Ticker and name change from today to reflect newish dividend mandate JSGI

[panshanger1] 07/10/2020 13:24

Japanese smaller cos on a nice run Just checked BGS

[panshanger1] 07/10/2020 13:20

Continues to perform well but discount starting to narrow Giving the ( well established) BG trust shin nippon a real run for their money

[panshanger1] 23/9/2020 13:13

Actually new ATH I notice

[panshanger1] 23/9/2020 13:12

Continues to perform well and a nice counterbalance to carnage in uk smaller cos IT sector I exclude montanaro from that which has held up well Also still holding EAT which has also been well behaved All 3 come with excellent dividend

[panshanger1] 03/3/2020 11:46

Looking good value at this level with a large discount to NAV and an under appreciated dividend

[robow] 09/1/2020 16:26

from Investment Trust Insider

Ian Cowie: it’s time to add a new Japan trust as Shin Nippon goes off the boil



Ian Cowie: it’s time to add a new Japan trust as Shin Nippon goes off the boil
Do investment trusts with the word ‘income’ in their name bribe shareholders with our own money, turning today’s capital into tomorrow’s yield at the cost of lower total returns? Where can British investors seeking international diversification find good value after the longest bull run on record? What should long-term investors do when a favourite fund suffers short-term setbacks?

These are three of the questions I wrestled with before adding another investment trust to my portfolio. The first question has widest application for anyone who suspects the current dominance of ‘growth’ funds and shares - whose main aim is capital gain - over ‘value’ funds and shares - which usually pay decent dividends - cannot last forever.

Digital disruptors often offer low or no income but have shot the lights out with the highest total returns in recent years. By contrast, high dividend yields have often indicated value traps.

But a trend is only a trend until it stops. Dreams of capital gains can disappear in an instant - or a profits warning - but the discipline of dividends - or investing for income and being paid to be patient - can help us cope with with stock market shocks.

That’s why this DIY investor, who hopes to fund retirement, has tended to favour shares which pay some income. Until recently, that ruled out one of the largest economies in the world - which also happens to have missed most of the fun in the current bull run.

Japan’s best-known stock market index, the Nikkei 225, is still trading at not much more than half the peak it hit 30 years ago. Expressing share prices as a multiple of earnings per share is another way to assess whether a market is cheap or expensive.

That can be further refined to take account of recent valuations and produce a cyclically-adjusted price/earnings ratio or CAPE. On that basis, Japan’s CAPE of 22 looks good value compared to America’s 31, according to analysis by StarCapital.

Better still, partly in response to reforms introduced by Japan’s longest-serving prime minister, Shinzo Abe, many stocks traded in Tokyo have begun paying dividends. Sad to say, that has not been reflected in returns from my longest-held Japanese investment trust, Baillie Gifford Shin Nippon (BGS), which continues to shun the notion of delivering value to shareholders in the form of dividends.

I had better say straightaway this didn’t bother me when BGS delivered terrific total returns of 196% and 677% over the last five and 10-year periods, according to Morningstar via the Association of Investment Companies. But it did begin to niggle when returns fell to a more mediocre 7.2% last year.

That made me take a closer look at what is happening in this sector and I noticed that JPMorgan Japan Smaller Companies (JPS) not only delivered a dividend yield of 4.1% but an eye-stretching total return of 32% last year. So the jibe at the start of this piece is not necessarily true.

Alan Brierley at the stockbroker Investec Securities explained: ‘JPS adopted a new dividend policy in April, 2018, and aims to pay quarterly dividends equivalent to 1% of the company’s NAV on the last business day of each quarter, giving investors unique exposure to an exciting asset class.’

Against that, Emma Bird at the stockbroker Winterflood Securities pointed out: ‘Despite BGS having underperformed recently, we rate Baillie Gifford’s team very highly and would expect its benchmark-agnostic, growth-focused investment approach to continue to deliver very strong returns for shareholders over the long‐term.R17;

What to do? I have hedged my bets by retaining BGS as a top 10 holding by value in my ‘forever fund’ and, instead of topping it up, added JPS to the mix, buying at 431p per share.

With luck, this might give me income and growth. Put another way, when I can’t decide, I can always diversify. Or, as journalists sometimes say, the editor’s indecision is final.

[nimbo1] 27/7/2018 11:27

Discount will close to 0 over a few months i expect. yield of 4%, good capital growth and sterling diversification - will become more popular as more buyers become aware. It also worked well with IBT over time.

[yupawiese2010] 03/7/2018 20:33

Proposing to pay a 4% dividend from capital account.

[chinahere] 19/2/2018 17:24

I'm sure it will when Japanese ITs are in favour.

[chopsy] 19/2/2018 15:19

Yes well I hold and I was attracted to the discount to NAV, but will it ever narrow?

[chinahere] 14/2/2018 19:05

I've looked into this after seeing it mentioned in Investor's Chronicle. Nice discount to NAV and I do like smaller companies so I will be buying this shortly I think.

[chopsy] 02/2/2018 12:52

I created this thread to have the news, esp the NAVs easily accessible.
So the NAV is up 7 today and the price goes down by 2p!

[chopsy] 02/2/2018 12:49

!FOLLOWFEED

[woodcutter] 08/1/2016 12:57

added to my holding today on the recent drop

woody

[lenses] 16/12/2015 12:20

Smaller cos in Japan is one of the few areas where there is growth. With a low yen, cheaper energy and nacent signs of China recovery, this growth could continue.

The sub shares appear very atractive. I hold.

L.

[chrisdonohue] 09/4/2015 12:47

Reaching for the skies.
JPSS profitable on a 6% increase in JPS in 18 months - a good buy.

[davemake] 23/1/2015 10:51

I've been a holder for some time now - no 'real' movement in the price of JPS in proportion to actual share prices....

Can anyone explain to me why buy JPS for Abenomics reasons, when, at the same time, the GBYJPY exch rate has gone from circa 120 to 190 (60% increase?. Thereby de-valuing the underlying Japanese share prices in proportion.

Yes, Japanese share prices have increased, but exch rate has suppressed any real increase in JPS value

Am I wrong?

The same will happen with Dragi's QE?

[woodcutter] 09/1/2015 12:51

Recently built quite a hefty holding here but 243p for the subscription share exercise price seems some way off. It will be interesting to see how this goes this year i expect abenomics, the oil price drop and yen weakness aiding exports to be very favourable.

woody

[knowing] 08/4/2013 16:21

The whole of Japan is on fire.

[grim] 08/4/2013 16:11

The NAV has actually fallen since month-end from 206p to 204p. This despite the Nikkei jumping by 6%. Reason? - the fall in the Yen I suppose.