Schroder Japan reports modest outperformance – Schroder Japan Growth Fund has published its annual report for the year ended 31 July 2018. The NAV and share price outperformed the TSE First Section Total Return Index, producing total returns of 10.2% and 10.6%, respectively, compared with 9.7% produced by the index. The directors have declared a final dividend for the year ended 31 July 2018 of 4.0p per share, representing an increase of 14.3% over the final dividend paid in 2017.
Extract from the manager’s report
“Net gearing was generally 10-12% and this made a small contribution to returns given higher market levels. Sector selection was slightly positive and stock selection neutral. The largest positive stock contributor was electronic component manufacturer TDK followed by oil refiner JXTG Holdings. The two largest detractors were small cap positions Sakata Inx and Hi-Lex. Bridgestone also disappointed. Not owning Takeda was positive as the shares sold off following its bid for Shire Pharmaceuticals. On the negative side cosmetics manufacturer, Shiseido, which we viewed as expensive a year ago, continued to perform strongly.”
SJG : Schroder Japan reports modest outperformance