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Bright long-term future

JPMorgan Japanese Investment Trust (JFJ) had an impressive run of both absolute and relative (to its benchmark index and to competing trusts) performance going into and during the worst of the pandemic. However, once vaccines became a reality, the share prices of businesses that had struggled during lockdowns surged. These were often the types of company that the managers would not consider for JFJ’s growth- and quality-focused portfolio. Consequently, over the past 12 months, JFJ has produced decent returns, surpassing £1bn in assets, but has given up a little of its outperformance of its benchmark.
The management team of Nicholas Weindling and Miyako Urabe is unfazed by this. They make the compelling argument that an investor in JFJ is backing the companies that are set to disrupt and revitalise Japan’s sclerotic economy, which are also capable of compounding their earnings sustainably over the long term. The long-term future is bright.