Performance of the most volatile Japan funds
| Fund |
1-yr returns (%) |
Volatility (%) |
| Neptune - Japan Opportunities | 1.32 |
22.81 |
| JPM Inv - Japan Focus |
7 |
22.11 |
| GAM - Star Japan Equity |
4.94 |
21.98 |
| JPM Inv - Japan Select Equity |
1.52 |
20.85 |
| Melchior - Japan Advantage |
4.2 |
20.63 |
Source: Financial Express Analytics
Of the five most volatile funds in the sector over a one-year period, three are in the bottom-five for performance: Neptune Japan Opportunities, GAM Star Japan Equity and Melchior Japan Advantage.
All have a volatility of more than 20 per cent, but have failed to return in excess of five per cent.
At the other end of the scale, Aberdeen Japan Growth is the least volatile fund in its IMA Japan sector over one year, and is the fourth-best performing fund.
The fund is managed by the group’s Japanese equities team, which is headed by Graeme Sinclair. The team favours industrials in the portfolio and has a 36 per cent weighting to the sector, according to Financial Express data.
Aberdeen Japan Growth also fares well over the longer term; it is the least volatile fund over three years, returning 23.9 per cent at a volatility of 17 per cent, compared with a sector average return of 15 per cent at 18.5 per cent volatility.
Sinclair recently sold out of industrial automation group Omron Corp, saying it had disappointed with its slow restructuring efforts. In its place, the manager bought up search engine Yahoo! JAPAN, saying the company is well placed in the online advertising market.