Prospect Japan Fund Ld Monthly Shareholder Fact Sheet (1566C)

TIDMPJF

RNS Number : 1566C

Prospect Japan Fund Ld

12 March 2014

The Prospect Japan Fund Limited

Monthly Shareholder Fact Sheet

The Prospect Japan Fund Limited (the "Fund"), a closed-end investment company incorporated in Guernsey, is pleased to announce that its Monthly Fact Sheet for February 2014 will shortly be available on the Fund's website (www.prospectjapanfund.com) and includes further information on the top 10 holdings and sector weightings.

The Fund gained 1.50% during the month in USD, versus the Topix Small Index' 2.30% decline. The Fund has outperformed YTD, gaining 4.65% versus the index' 2.33% decline.

Strong performance came from Shaklee Global Group (8205), a seller of nutrition and personal care products. Shaklee Global Group contributed strongly to total performance, as shares rallied after the company reported triple-digit profit growth in the 9 months through the end of 2013, and issued a large upward revision to full year forecasts.

Weakness came from Akatsuki Financial Group (8737) and Gro-Bels (3528). Akatsuki Financial Group, a commodity futures trader, retreated from post crisis highs, along with other securities and commodities traders, despite strong 3Q results announced during the month. Gro-Bels, a condominium developer, declined after the announcement of 3Q results, as performance was little changed following the inclusion of recent acquisitions to consolidated results and forecasts.

Equities retreated again during the month, as 4Q annualized GDP underperformed expectations, rising 1.0% vs consensus estimates of 2.8%. Reported corporate profits for the 9-month period to December were up 44.8% YoY (excluding financials, electric power companies).

February's bi-lateral TPP negotiations between Japan and the US hit a temporary road block due to resistance for lifting tariffs on the Japanese automobiles and American farm products. Attention now turns to reaching a framework ahead of US President Obama's planned visit in April.

The Bank of Japan maintained its monetary easing commitment following its February policy meeting, while doubling a low interest lending facility to banks to JPY 7 trillion, and extending the deadlines by one year. Expectations remain for additional monetary stimulus later in the year should the April consumption tax increase impact the Japanese economic growth.

Miki Shoji reported that vacancy rates in Tokyo's Central Business District continued their downward march, falling 0.16 ppt to 7.18% in January. Commercial property transactions hit a six-year high of JPY 4 billion yen in 2013, let by office properties (+82% YoY).

REIT

In USD, the TSEREIT index saw a total return of +1.09% month-on-month, outperforming the Nikkei 225's 0.28% decline. J-REITs continue to be buoyed by improving fundamentals and attractive dividend yield spreads to the low 0.6% long-term benchmark rate. For the first time in well over a year, no J-REIT issued new equity during the month, opting instead to issue JPY 30 billion in new corporate bonds for refinancing of existing debt.

The Bank of Japan purchased a total of JPY 1.8 billion in J-REIT units during the month, on pace with the 2014 target of JPY 30 billion for direct purchases. The total amount of units purchased to date now stands at JPY 144.9 billion.

J-REITs withheld from new equity issuance during the month. However, new bond issuances were plentiful, with JPY 25 billion issued by seven non-portfolio holding JREITs during the month. The new corporate bonds average a 5 year maturity at 0.49%.

There was a total JPY 53.7 billion in property acquisitions announced during the month, along with JPY 4.2 billion in dispositions.

Note: As of 28 February 2014, of the Fund, Gro-Bels (3528) is 4.98%, Shaklee Global Group (8205) is 3.97%, and Akatsuki Financial Group (8737) is 4.94%.

 
Enquiries: 
Northern Trust International Fund Administration Services (Guernsey) 
 Limited 
 Franczeska King 
 +44 (0) 1481 745918 
 Westhouse Securities Limited 
 Alastair Moreton / Hannah Young / Darren Vickers 
 +44 (0) 20 7601 6118

This information is provided by RNS

The company news service from the London Stock Exchange

END

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