Summary of Investment Objective
The Japan Fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in or exercising the predominant part of their economic activity in, Japan.
Fund Manager's Report (as at Jul 31, 2010)
The fund underperformed its benchmark in July.
Despite fears of an economic slowdown in the United States, Japanese equity markets rallied on strong results announced by both US and Japanese firms. However, the strength of the yen against the USD limited the upside. Yen appreciation was driven by expectations for a narrowing of the interest rate differential between Japan and the US.
The fund’s outperformance was attributable to strong performances from electronics companies such as Fujitsu, Hitachi and TDK, which announced better than expected results for the Q1 FY 2010. Tire manufacturer Yokohama Rubber also contributed on increasing demand and a decline of natural rubber price. Conversely, defensive holdings, such as East Japan Railway and Tokyo Electric Power declined as investors took profits.
We built positions in selective exporters where share prices had fallen due to the yen strengthening against the dollar. We added NIDEC and HOYA while taking profits and completely sold out from Toshiba and Taiyo Yuden. We also added internet related stocks, by re-entering Gree, a mobile phone game operator, and initiating a position in online retailer Rakuten.
Japanese corporations have relatively higher earnings growth potential compared to companies in other developed countries; however external factors will likely to continue influencing the equity market.The fund will maintain exposures to theme oriented smaller cap stocks, reflecting their higher growth prospects, and it will continue to invest in companies with differentiated products and services or companies restructuring in order to sustain their growth.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Minoru Kikuchi |
| Launch Date | Dec 31, 1985 |
| Base Currency | JPY (¥) |
| Additional Dealing Currencies | EUR (€), USD ($) |
| Benchmark | TSE First Section (TOPIX) |
| Morningstar Sector | Equity Japan |
| Total Fund Size (m) | JPY (¥) 3209.5 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0249409425 |
| Bloomberg Equity Ticker - Fund | MIGJPAY |
| Bloomberg Equity Ticker - Benchmark | TPX |
| Reuters Page Id | BLRKIG |
| Swiss Valoren Number | 600875 |
| CUSIP | L1049J528 |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 1.05 | 1.06 | 0.91 |
| Volatility (Annualised Standard Deviation) | |||
| Japan Fund | 24.2% | 22.0% | 20.2% |
| TSE First Section (TOPIX) | 22.7% | 20.4% | 20.1% |
Risk Grading
Low
High
Non-distributing
Important Information
The information on this website is available to Qualified Investors and Professionals in some jurisdictions on a limited private placement basis subject to applicable laws and regulations in the country of distribution. The information is confidential and should not be reproduced or distributed to persons other than the recipient.
The investment objective stated above is a summary of the main objectives of the Fund. Please refer to the BGF prospectus for full details.
A limited range of BGF sub-funds have a distributor status A share class that seeks to comply with UK Distributor Status requirements. Please contact the Manager for more information.
The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.
BlackRock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised.
Sources: Fund – BlackRock Investment Management (UK) Limited (BIM(UK)L), Indices - Datastream, BIM(UK)L. Quartiles - Standard & Poor's. BIM(UK)L Risk Grading: High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds with emerging market, small capitalisation, or narrowly focused/concentrated equity mandates, which may restrict liquidity and increase the volatility of returns. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice. BIM(UK)L Risk Grading: Medium/High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds which may be expected to have all, or at least a high proportion, of their assets invested in equities, or in bonds rated below investment grade. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice.Performance is shown as at Jul 31, 2010 in JPY on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.