JPMorgan Japan Small Cap Growth & Income plc (LON:JSGI) has now published its December 2023 factsheet which can be found below.
Monthly – As of 2023/12/31
- With the focus on the Bank of Japan’s (BoJ’s) monetary policy meeting, Japanese equities traded in a tight range, with the MSCI Japan Index returning -0.5% over the month. At the meeting, the BoJ kept policy rates unchanged, with the current economic assessment consistent with prior comments, and offered no guidance on whether it might scrap the policy next year. As a result, the Japanese yen appreciated sharply, ending the month at 141.0 JPY/USD. In terms of style, growth outperformed value.
- The portfolio outperformed the benchmark over the month, with both sector allocation and stock selection contributing positively to performance. At the stock level, overweight positions in Lifedrink (nonalcoholic beverages) and MEC (adhesion enhancer products) were among the top contributors to performance. The share price of Lifedrink rose on results that were ahead of expectations. The share price of MEC rose on expectations of the company being a beneficiary of the bottoming out of the semiconductor cycle, with increased capital expenditure in 2024.
- Overweight positions in Rakuten Bank (digital bank) and Capcom (gaming) were among the top detractors. The share price of Rakuten Bank fell due to a secondary stake sale by parent company Rakuten Group and the overhang of future stake sales by Rakuten Group. The share price of Capcom fell on a slower offtake of its recently released titles.