Lindsell Train outperforms even as Bank of Japan supports index

Lindsell Michael Lindsell Train

The Lindsell Train Japanese Equity fund has risen 4.1 per cent compared to the Topix index loss of 0.6 per cent, despite the fund’s holdings largely missing out on Bank of Japan support in the form of ETF purchases.

Broadleaf up and Kirin Holdings were the biggest contributors to the fund’s performance rising 12 per cent and 10 per cent respectively over March.

Astellas delivered the worst performance of the five fund holdings that fell over the period, down 3 per cent.

Fund manager Michael Lindsell says: “Although the market fell slightly this month, it was noticeable how on down days there was no absence of support from official sources as the Bank of Japan continued to accumulate ownership of the market – though not generally our companies – with its continued purchase of ETFs”.

Last August, the Bank of Japan almost doubled its annual ETF purchases from ¥3.3tn to ¥6tn.

The following month the Bank said it would rebalance its purchase programme so that ¥2.7tn went towards Topix-focussed ETFs, while it had traditionally been much more focussed on the Nikkei 225.