Funds Centre

HL Switch Alert - Old Mutual Japanese Select

The manager of the Old Mutual Japanese Select Fund, Leslie Jones, will retire in April. Management of the fund will pass to Old Mutual’s Quantitative Strategies team, which uses a statistical model to forecast potential risk and return, and

to highlight stocks for the portfolio.This process is somewhat different from Leslie Jones’s approach. Japan’s stock market does not always follow conventional trends and we have concerns whether this process will prove effective. In our opinion a more flexible approach would be better. We therefore believe investors in the Old Mutual Japanese Select Fund should consider switching to a fund with a more dynamic approach, such as Jupiter Japan Income.In our view well established companies, with good cash flow and paying high dividends, are likely to rally first when the economic outlook improves. These are exactly the types of companies on which Simon Somerville, manager of Jupiter Japan Income, focuses. In the meantime any income can be reinvested to boost your capital return. He currently sees opportunities in companies that can benefit from increasing domestic demand. The fund has held up well compared to its peers during the recent turbulence and when the Japanese market recovers we believe it could be well placed to benefit.

What next?If you are an investor in the Old Mutual Japanese Select Fund please read the key features for the Jupiter Japan Income Fund and then consider your options. If you decide to switch and are registered for our online service, simply log into your account to place your instructions online. Alternatively you can call our dealers on 0117 980 9807. Please have your Master Password to hand.Mark Dampier, Head of Research