Polar Capital has lambasted Abenomics after a ‘disappointing’ end to its financial year, which saw outflows from its underperforming Japan fund send the firm’s assets under management down 12% year-on-year.
Tipped as the programme to reinvigorate the country’s economy, Abenomics was instituted by Japanese Prime Minster Shinzo Abe in late October 2012. Prior to introduction, Polar Capital’s Japan fund had outperformed its benchmark by 57% from its 2001 launch.
The firm say the team’s process has underperformed the market by a considerable margin ever since. Nevertheless, the fund’s team remains committed to its investment process, and believes the approach will once again deliver outperformance when Japan’s economy stabilises – although, the firm adds instability in global markets will continue to impact performance in the near-term.
The firm’s disappointing year has been followed by an underwhelming Q1 this year, with assets under management falling to $10.4 billion (€9.3 billion) at the end of March, compared with $12.3 billion a year prior.
Looking forward the group is optimistic, noting 14 funds out of its 18 Ucits funds have outperformed their benchmarks since launch, and its dividend will be maintained at current levels this year.
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