GLG Japan CoreAlpha

The GLG Japan CoreAlpha strategy aims to generate capital growth through investing in the quoted securities of companies operating in Japan.
 
  • A proven and disciplined investment approach incorporating a combination of strategic and contrarian thinking
  • Experienced portfolio management team: Jeff Atherton has been an integral part of the team since 2011, and took over as lead portfolio manager in January 2021. Collectively the team has amassed over 60 years of experience in the Japanese equity market.
  • Award-winning: the team’s excellent investment performance has been recognised by a number of industry awards+
 

Approach

The strategy’s philosophy is best described as a combination of strategic and contrarian thinking.

The strategic element comes from a perceived opportunity in large cap stocks versus mid and smaller caps. This is predicated on the view that small cap outperformance is unsustainable and that the valuation advantage formerly enjoyed by the latter has unwound.

The contrarian element is based on the principle that cyclicality strongly influences every sector of the Japanese market, and that outperformance can be generated by exploiting extremes of valuation. This means buying stocks that are completely unloved, and selling them when they become popular (after significant price appreciation). Great care is taken in stock selection and any change of view is subject to extremely serious consideration.

The team focuses its attention on judging the quality of businesses, basing assessments on what has been achieved historically and what can potentially be determined about the future from the prevailing environment. Identifying significant differences in relative valuation and a strict adherence to contrarian principles have historically proved to be both a potent source of alpha and a key competitive advantage.

Approach Long-only
Asset Class Equity
Geographic Focus Japan
Reference Index TOPIX

Performance

Strategy

Reference Index

Relative Return

4.1%

4.6%

-0.5%

-1.2%

3.1%

-4.2%

12.2%

7.2%

5.1%

44.5%

12.6%

31.9%

19.7%

15.0%

4.7%

216.2%

114.9%

101.4%

Performance by calendar years

Strategy

19.4%

28.8%

-15.6%

9.8%

-16.6%

As at 31 May 2023 Inception date 31 January 2006

Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.

Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in JPY and is based on a representative investment product or products that follow the strategy. An example fee load of 0.75% has been applied. TOPIX is selected by the Strategy Manager/s for performance illustration and comparison purposes only. It is not a formal benchmark and does not form part of the strategy’s objectives.

Manager(s)

Jeffrey Atherton
Jeffrey Atherton
Head of Japanese Equities, Man GLG
Adrian Edwards
Adrian Edwards, CFA
Portfolio Manager, Man GLG
Emily Badger
Emily Badger, CFA
Portfolio Manager, Man GLG
Stephen Harget
Stephen Harget, CFA
Portfolio Manager, Man GLG

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Important Information

+ Awards and/or ratings are referred to for information purposes only and should not be construed as an endorsement of Man, its affiliates or its products. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are determined.

Considerations

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.