Small- and mid-cap focus sees Japan ITs outperforming OEICs

Japanese investment trusts' high concentration to small and mid caps has paid off, with the sector outperforming the open-ended space over the past year.

The seven Japanese investment trusts have posted a net asset value average return of 11% over one year, outstripping the IMA Japan sector’s 5.2%, according to Oriel Securities. The closed-ended vehicles are benefitting from managers moving down the market-cap spectrum and  the Topix Small Cap index’s bull run since the country’s devastating tsunami in March. Winterflood’s analyst James Brown said small-cap sentiment has improved as the country seeks to redevelop areas damaged by the disaster. He added it is “extremely unusual” for Japanese investment trusts to produce better ret...