Hargreaves Lansdown has removed Paul Chesson’s Invesco Perpetual Japan fund from the Wealth 150 list of recommended funds due to its volatile performance.
Chesson, head of Japanese equities, has run the £318m fund since 2000 and takes a high conviction, contrarian approach to investing. Investment analyst Dominic Rowles says that while this has led to short bursts of outperformance, there have often been long periods of underperformance compared to the stock market.
Over three years the fund has returned 56.5 per cent against the 59.7 per cent average of the IA Japan sector, FE data shows.
“Overall, we do not feel investors have been sufficiently compensated for the risks taken,” Rowles says. “The Wealth 150 is reserved for managers in which we have the highest conviction. In our view, there are other talented fund managers in the Japan sector who have demonstrated more consistent performance and a greater ability to add value through their stock picking over a prolonged period.
“Furthermore, investors are able to access these managers at a lower ongoing fund charge, which can make a real difference to performance over the long term.”
The remaining active Japan funds in the Wealth 150 include Man GLG Japan CoreAlpha, Schroder Tokyo and J O Hambro Japan, with OCFs of 0.9 per cent, 0.91 per cent and 0.85 per cent respectively, compared to Invesco Perpetual Japan’s OCF of 0.93 per cent.