Page 15 - DIY Investor Magazine | Issue 34
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 The MSCI Japan Small Cap has fallen substantially since its peak in mid-2021, providing JSGI’s managers with the chance to purchase interesting stocks at lower prices. One such new addition to the portfolio is Shift, Japan’s top software testing service. JSGI’s managers had been watching this stock for some time and the recent market sell-off gave them the chance to acquire the name at an attractive price.
Shift allows software engineers to outsource the low value- added, time-consuming work of testing software. The company has achieved annual revenue growth of more than 40% a year for eleven consecutive years and its long-term prospects are very positive, as its market penetration is still very small.
Trends triggered or accelerated by the pandemic are now embedded in Japan’s daily life and management practices and will continue to drive the development of new products and services for many years to come. Growth, productivity and corporate earnings will increase accordingly, regardless of prevailing economic conditions.
JSGI’s portfolio holdings, and its shareholders, could be ideally placed to benefit.
In addition to targeting long term capital growth, JSGI also offers an attractive quarterly dividend, equivalent to an annual dividend yield of about 4%. JSGI is a relatively low-cost way for investors to gain diversified exposure to the many exciting opportunities on offer in Japan’s small cap space. The
fund offers investors the possibility of capital gains, market outperformance, a competitive, regular income, and a front row seat to witness, and benefit from, Japan’s technological transformation.
More information on Japan Small Cap Growth and Income Plc here >
   This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken
as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management.
Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it
is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. And its affiliates worldwide.
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DIY Investor Magazine · July 2022

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