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Bullish UBS picks out Japan trusts
by Sunil Jagtiani on Sep 24, 2002 at 11:59
UBS Warburg has released a list of recommendations of Japanese investment trusts based on its incredibly bullish views about prospects for the country's stockmarket.
The stockbroker's strategists think the Nikkei 225 index will reach 11,000 points by the end of the year, from its current level of 9,700, a rise of 14%, and soar to 12,000 by June 2003.
It thinks the TSE First Section index (Topix) will reach 1,100 by the end of 2002, a rise of 17%, and 1,200 by the middle of 2003.
These are optimistic predictions given the parlous state of Japan's economy and the threat of a world-wide, 'double-dip' economic slowdown.
UBS highlights five Japanese funds from those available among investment trusts.
They are Atlantis Japan Growth , Baillie Gifford Shin Nippon , for which UBS is house broker, Fidelity Japanese Values , Fleming Japanese (FLMJ) and Schroder Japan Growth .
Atlantis Japan Growth, run by Tokyo-based Ed Merner since its launch in 1996, is £120 million strong and stands on a 12% discount to net asset value.
The fund has a bias for small-cap and mid-cap stocks at the moment. Its NAV is up by 48% over the last five years but down by 9% over the last year.
The stockbroker highlights Fleming Japanese for investors who want large-cap exposure. The £420 million trust is run by Stephen Mitchell from London.
The fund stands on an 18% discount to NAV. It is down 9% over the last five years and 10% over the last year.
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- Atlantis Japan Growth (Ordinary Share)
- Baillie Gifford Shin Nippon (Ordinary Share)
- Fidelity Japanese Values (Ordinary Share)
- Schroder Japan Growth (Ordinary Share)
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