After a fantastic first year can Aberdeen Japan continue its impressive form?


#1

The Japanese stock market has endured a roller-coaster ride over more than a decade where most investors made no money. Prime Minister Shinzō Abe has
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#2

I bought a batch for my SIPP back in mid-Nov on the basis of the hedging and Aberdeen expertise. It’s not moved much since, but I’m happy to get Japanese exposure through this trust. I also have some Baillie Gifford (BGFD) and the ishares hedged ETF (IJPH) so it will be interesting to compare results.

Most of my Far East exposure is via Aberdeen trusts so I’m hoping their management style will do well in japan as well.

 


#3

I have Baillie Gifford Japan too @scjim and Shin Nippon. I love it but Japan is a big stock market and the argument for being hedged this year and probably next too is strong so I think I’m going to but a wee bit if this tomorrow.

My direct Japan holdings overall is under 2%, though I’ve probably got more through Global funds or trusts. I want to put a wee bit more in BG Japan I think and maybe £15k in Aberdeen Japan. The fact that the discount is well below the average for the year doesn’t worry me because I think it’s narrowed because the prospects for japan are the best they’ve been in well over a decade. I think this is an easy buy right now.


#4

If the Yen is so volatile it might be a better idea to invest in this via an Aberdeen investment trust savings plan. You’ll average out the highs and lows of the the share price and if it’s anything like the Baillie Gifford plan the costs will be low.

 


#5

Yeah the investment trust savings plans are cheap @stgeorge but they do come with the disadvantage that if you wanna switch from Aberdeen to Henderson or Scottish Mortgage you have to sell it then switch it and maybe lose your ISA tax status and I can’t access them through my SIPP.

That’s why I’ve never used them but it is tempting. I’m going to stick something in to this trust anyway. What irks me is because you can only put £40k in to your pension now or only £3333 per month it limits how much you can put in to an investment trust through your SIPP without getting clobbered with charges.

The risk for this trust is the mandate hasn’t been bedded in that long but the Aberdeen investment style seems to work fairly well and I like the hedging, plus if they’re right about what they say here about Aberdeen wanting to make this trust larger they’re only gong to achieve that by delivering good performance.


#6

You’ve got to hope they can continue to manage the hedging though, not a skill everyone has.

I didn’t know Aberdeen had a Japan trust, that’s new to me. I was looking at Baillie Gifford Japan but now I’m considering this. On a short term basis I like the hedge and if it’s true that Aberdeen want to grow it then I think there’s a big incentive there for them to make sure this does well.

Does anyone else own it or the BG Japan trust or even Schroders?


#7

BG Japan is one of my longest holdings and I really rate it and the manager Sarah Whitley. It has suffered from the currency falling recently though and there is a case for Aberdeen Japan to be made @Casper.

Japan is still the world’s third largest economy when I last looked, there’s a case perhaps for owning both depending on how much you want to invest.

 


#8

I bought Aberdeen Japan on a larger discount several months ago. I bought it via my SIPP to hold for several years or more. The performance since I bought is is great, it’s up over 20%. This is a very short space of time to judge of course, but I’m pleased with it not just because of how it’s done since purchase but because the investment strategy they employ is similar to other Aberdeen trusts I own and have done very well out of.

BG Japan is undoubtedly a good trust too but so is this one in my view.


#9

@Mousy Investment Trust Saving schemes can be transferred to another provider retaining their ISA status.


#10

Does anybody use one of the Aberdeen investment trust plans? I don’t know a lot about them but I have seen them mentioned on here and on Motley Fool.

I’m just wondering about the pros and cons with them? I know the obvious one that I cant switch to a JP Morgan or whatever investment trust so easily.

My attraction them is to save monthly. I have nothing in Japan and I am considering saving £500 per month to get more exposure to Japan.


#11

They are a great way to save @irishcharm. They don’t charge anything to use them. The minimum amount is £100 per month.

The biggest disadvantage is that you can’t switch to another fund manager as easy as you can on a fund supermarket but the advantages outway this in my view.

Also you can transfer away for free.

I think they’re a fantastic idea. It’s a shame they don’t allow £50 per month because it would be great for children and young people who don’t have as much cash.

Another great advantage of saving regularly is you even out the peaks and trough’s of the share price and discount.