There are very few self-deprecating fund managers, but last week I discovered one: James Salter of Zenner Asset Management. What a pleasant surprise it was to discover that he was talking candidly about investing, rather than hyping the funds he manages for investors.
James, who became a founding partner of investment firm Polar Capital in 2001, founded Zennor three years ago. It is a business that focuses purely on extracting profits from the Japanese stock market.
Japan is a part of the investment world that James and co-investment manager David Mitchinson are familiar with. Both have long managed Japan portfolios for a number of blue-chip investment brands, including JPMorgan and Schroders.
The two currently manage two funds, Zener Japan and Zener Japan Income. The second fund is less than a year old and has assets of £44m, while Zener Japan has been established since 2021 and has now grown to £440m.
Japan’s stock market has been strong over the past year, with the average return on Japanese investment funds just under 10%, but this figure has been depressed by the pound’s strength against the yen. Zener Japan made a respectable 14% return on him.
James, a long-distance open water swimmer who has swum across the English Channel, is reluctant to market his investment products. He would rather be particular about managing his money and leave it to others to decide whether it is worth supporting him and David.
He also spoke frankly about the current state of the Japanese stock market. Unlike other investment experts, James urges caution. His view is that much of the foreign money flowing into Japanese stocks is “directed in the wrong direction.”
He describes this as a classic “buy high, sell low” investment behavior.
James argues that markets are not immune to global shocks. “If the U.S. economy goes into recession, all bets are off,” he says. “That will have a negative impact on many leading stocks, such as Japanese tech companies, whose prices have risen on prayers and prayers.”
In economic terms, he describes Japan as a barnacle on a whale called the United States. When whales are in trouble, so are barnacles. He also believes that Japan cannot escape the effects of escalating geopolitical tensions between China and Taiwan.
It’s all rather true, and refreshingly so.
On the positive side, he says, if Japan raises interest rates, the yen will appreciate, leading to higher market returns for UK investors. And as Joe Baunfreund of Active Value Investors makes clear in this week’s Fund Focus, the world of Japanese PLCs is full of hidden gems begging to be discovered.
“Japan is not a get-rich-quick investment story,” he concluded. “It’s a slow burn.”
In other words, inject money into the sector in stages and invest for the long term.
The website Trustnet is a great source of information about funds investing in Japan. Zennor Japan is available for purchase through the AJ Bell investment platform and its sister fund, his Income fund, is available for purchase through Hargreaves Lansdown.
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Fixed-rate bond scammers are back – and they’re smarter than ever
Last spring, retired businessman Ron Newman (and thousands of others) was under siege by online scammers.
Every time I turned on my computer at my home in Shepparton, Surrey, I received another email urging me to invest in attractive fixed-income bonds. The bond is clearly backed by one of the country’s leading brands. Centrica, EDF Energy, Heathrow or MS.
Thankfully, as we reported on this page at the time, 86-year-old Ron didn’t fall for these fraudulent offers. He disrespected them and at the same time helped ensure that the companies whose brands were cloned were doing everything in their power to shut down the scammer’s website.
Unfortunately, the scammers are back. Last month, Ron received an email claiming to be from Primark about an “exclusive” investment opportunity he couldn’t afford to miss. The newspaper announced that the retailer, which is a “pioneer in affordable fashion,” has partnered with “financial giant” Morgan Stanley to issue a 7.25% bond. “A fusion of style and finance,” enthused the email.
Ron admits that the use of two luxury brands in one email made him question whether the bond offer was genuine. So, just to be sure, he forwarded the email to me to check.
After clicking on the link and registering for the bond, it quickly became apparent that it was a scam.
The linked page has few important details other than a minimum investment of $10,000 (£8,000) and is filled with additional links (four of them) to help you invest right away. It was there. “There is a limited amount of bonds available, so we urge you to act quickly.”
Morgan Stanley staff did not comment when I sent the email in question, but the investment bank acknowledged it was a scam. Therefore, if you receive this email within the next few days or have already received it, please ignore it.
Better yet, report it to fca.org.uk/consumers/report-scam and then contact jeff. [email protected].
This mutual company is thriving…100 years later
Think about building a society and think about it on a national scale. But like Nationwide, there are many other organizations – 41 in fact – that are doing great work for savers and borrowers, keeping their branches open, and supporting their communities.
This includes Vernon, based in Stockport, Greater Manchester. Next month, this mutual will celebrate its 100th birthday with a smile. why? Because it’s thriving.
The company’s savings and mortgage book is in growth mode and its six branches are busier than ever. There are also rumors of opening a new branch. I never have!
To mark its 100th anniversary, the City of Vernon has established a charitable foundation which will distribute £100,000 in small increments to support businesses and charities across Greater Manchester and Cheshire. How wonderful!
In a world dominated by big financial brands but often let down by terrible customer service, we should cherish the Vernons of this world who are four square meters behind the communities they serve .
“Dogflation” becomes a problem at home
With soaring food costs, daunting veterinary fees, and soaring insurance premiums taking a toll on household budgets, owning a dog, especially a pedigree dog, is becoming out of reach for many families. There is.
Dog rehoming charity Dogs Trust says ‘dogflation’ is running at 9 per cent (twice the economy-wide inflation rate), forcing some owners to give up their pets.
Last year, the charity received 45,000 requests from owners wishing to surrender their pets, but the issue was resolved without government intervention (such as suspending VAT on pet food or vet bills). The group says the issue will not be resolved.
Of course, insurance companies make a fuss about charging owners of some breeds more than £1,500 a year in premiums, and when making a claim, they have to pay excess fees and co-pays (beneath the vet’s bill). (a certain percentage) will be borne in combination. Scandalous.
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