Alma Eikoh Japan Large Cap Equity Fund
Overview
Alma Eikoh Japan Large Cap Equity is a long only fund investing in Japanese large cap stocks.
The fund is managed internally by Alma Capital London.
Share Class
NAV
Cumulative Performance (%)
Fund Inception 12 June 2014
| Daily | Monthly | Ytd | 1Yr | 3Yr | 5Yr | Incept. | Incept.Date |
|---|
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
Fund Strategy
The Strategy seeks long-term capital growth by investing in Japanese large cap stocks, typically with market capitalisation in excess of US$ 1bn. The team analyses long term company fundamentals through extensive in-house bottom up research with strong risk management ethos. At the heart of the philosophy is a deep-seated knowledge and understanding of the Japanese companies that the Eikoh team invests in. Portfolio of around 30 companies which are well managed, profitable and with good prospects.
Investment Manager
Alma Capital London is an FCA-authorised fund management company, which is a subsidiary of Alma Capital Investment Management, a Luxembourg-based independent management company founded in 2006.
Key Persons
James Pulsford
Portfolio Manager
James started his career at Morgan Grenfell in 1987, moving to Japan shortly thereafter. During his 12 years in Tokyo, he went on to become the Head of the Small Cap Equity team. James returned to London in 1999 where he managed a number of Japanese large cap products for what became Deutsche Asset Management. As well as various Japanese long only mandates, James has developed the Equilibria Japan long/short strategy at this time. James now has over 42 years’ experience investing in Japan and speaks fluent Japanese. He holds a BA from Oxford University.
Tom Grew
Portfolio Manager
Tom started his career in management consulting before moving to Eikoh Research Investment Management (ERIM) in 2018, an independent asset management company led by James Pulsford established as a result of the spin out of the Japanese Equity Team from Deutsche Asset Management. At ERIM, he worked on the long-only and hedge funds management. Tom holds a BA from Cambridge University and has completed the CFA syllabus.
Statistics & Commentary
Performance
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Portfolio Characteristics
Top 10 Position Details
Investment Manager's Commentary
as of 31/07/2026Market Review and Outlook
The Topix rose by 0.21% in July, while the overall index was little changed over the month there was dramatic volatility and significant differential performance within the market over the period. AI related stocks that had provided strong market leadership over Q2 fell sharply amid intensifying US-China competition in AI development and concerns over the sustainability of rising investment costs for US hyperscalers. While Topix eked out a small gain, the tech heavy Nikkei slumped by -8.14% and within the wider market, value outperformed growth with Topix Value up 1.94% over the month and Topix Growth down -1.66%. Foreign investors were net buyers over the month, reversing the selling shown in June, and over the year to date have committed Y5.2trn to the market. Business corporations remain the other significant net buyer of the market, adding a net Y4.3trn of stock so far with Japanese financial institutions the major structural seller to absorb this buying. The stock price moves in Japan mirrored those in wider global markets, while the S&P was flat and Europe modestly higher, NASDAQ fell by 3.2% and the KOSPI slumped by 22.2%. Following the resumption of hostilities between the US and Iran and effective closure once more of the Straits of Hormuz, the oil price jumped, recovering June’s losses with Brent closing at $88, up $15 over the month. In response to persistent Yen weakness in recent months the Japanese and US governments conducted coordinated Yen-buying intervention in the foreign exchange markets at the end of the month causing the Yen to move sharply higher, closing at Y157.4 against the US$ up from Y162.5 at end June. The coordinated US-Japanese intervention marks a significant escalation in currency policy and is the first such action in 28 years since the 1998 Asian currency crisis.
In domestic news, there was a large earthquake centered on Kumamoto on the 28th July that has resulted in 38 reported deaths so far and damage to local infrastructure. While the magnitude of the quake at 7.1 was slightly greater than the 2016 7.0 scale quake that caused considerable supply chain disruption in its aftermath, reports received so far, while far from complete, have suggested that the damage may be less disruptive this time. The BOJ left the policy rate unchanged at 1.0% at its July meeting, however the tone of its Outlook Report was hawkish, referencing expanding AI demand, exchange rate developments and the risk that the underlying inflation rate might overshoot the 2% price stability target. June industrial production was up +1.3% MoM and +4.2% YoY for the third consecutive monthly gain with semiconductor production equipment contributing to the strong June figure. The Economy Watchers Survey for June showed an improvement in outlook from 40.9 to 46.1 and the Nikkei/Markit PMI’s for July were positive too. The Tokyo CPI for July came in at +2.0% and a similar +1.9% stripping out fresh food. The Takaichi administration formally announced a cut in consumption tax on food from 8% to 1% for two years starting in April 2027.
Changes made during the month further reduced the portfolio exposure to AI investment derived growth but retained the economic gearing of the portfolio. Those companies directly geared to AI investment mostly fall within Semiconductors, Technology Hardware, Materials, and Capital Goods though outside of Semiconductors these sectors contain many companies without this dependence. The portfolio holds a +2.3% overweight in Semiconductors, a +2.7% overweight in Technology Hardware, a -0.3% underweight in Materials and a -1.5% underweight in Capital Goods. Viewed in simple terms the fund holds 8 companies totaling 17.4% of assets where AI is the primary driver of the business, this includes the fund’s Semiconductor holdings. In addition, the fund holds 2 factory automation stocks comprising 5.4% of assets where AI demand accounts for a significant element of overall sales. Judging the precise degree of AI exposure relative to the market is complex and subjective, but we can say with reasonable confidence that any overweight we have here is modest. The recent sell off in AI investment geared names has reduced the valuations that these stocks trade on and we do not intend to further reduce our exposure to this area which we continue to believe offers good prospects for growth for many companies. Overall exposure remains balanced between economically geared and less exposed areas of the economy. Two thirds of risk exposure of the fund is idiosyncratic with the remainder divided evenly between sector and factor risk. The fund retains a growth tilt versus the index, and this is the largest element of factor risk. While the external environment in terms of geopolitics, foreign exchange and demand remains volatile we have confidence in the outlook for the portfolio companies and will remain vigilant in assessing and updating our views as future events unfold.
Fund
The fund fell by -1.80% (JPY share class) in July, underperforming Topix (dividends reinvested) by -2.02%.
The fund’s underperformance over the month was driven equally by sector allocation and stock selection, and largely reflected the market’s rotation out of AI/data centre supply chain names into defensive laggards and sectors perceived as facing AI displacement risk. In sector allocation, the fund was hurt by overweight positions in Semiconductors & Semiconductor Equipment, as well as underweights in Insurance, Automobiles & Components, Transportation, and Media & Entertainment. These losses were only partly offset by overweight positions in Commercial & Professional Services, Software & Services, Financial Services, and Consumer Durables & Apparel. In stock selection, the main detractors included several AI beneficiaries that led the market in the first half of this year. These included cooling device and optical cable maker Furukawa Electric, NAND flash memory specialist Kioxia, semiconductor materials producer Resonac, and sanitary equipment and electrostatic chuck maker TOTO. Robot and servomotor maker Yaskawa Electric underperformed both the Capital Goods and the narrower factory automation sector after Q1 earnings disappointed, as production was disrupted by the implementation of a new ERP system. On the other hand, technology and medical conglomerate Fujifilm outperformed Technology Hardware & Equipment as investors rotated away from capacitor and passive component names that had surged on AI demand, while an end-of-month broker target price upgrade and a positive earnings preview also supported the share price. Tsuruha outperformed Consumer Staples Distribution & Retail and other drugstore operators after strong Q1 results highlighted solid cost control and merger synergies with Welcia. In Capital Goods, industrial conglomerate Hitachi advanced after reporting strong order momentum and profitability in its power grid business. KDDI also continued to outperform telecom peers despite no company-specific news.
In July we sold Yaskawa Electric as we believe the ERP-related disruption may make it hard for the company to achieve full-year guidance, and the company’s plan to achieve normalisation of production by September is not risk free. We also sold electronics conglomerate Panasonic, judging that risk/reward has become less attractive following recent strong share price gains, with strength in AI-related battery backup units (BBUs) and capacitors potentially offset by uncertainty surrounding its automotive battery business and possible impairment at its US software subsidiary, Blue Yonder. We participated in the equity offering of Kawasaki Heavy Industries (KHI). We believe the financing provides an attractive entry point into KHI’s exposure to structural growth areas including civil and defence aerospace, gas turbines for power generation, and customised industrial robotics through its exposure to semiconductor robots and physical AI. We repurchased a position in Sumitomo Chemical, held earlier in the year by the fund, reflecting both the recent underperformance of the stock which leaves valuations looking very attractive, and our expectation that trading conditions have remained firmer than we had feared. Longer term we like prospects for their electronic materials and agrochemicals businesses and think that the stock is likely to be rerated higher over the next few years as these businesses grow and develop.
Facts & Documents
Facts
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 12 June 2014
Base Currency: JPY
Depositary, Administrator, Transfert Agent: BNP Paribas SA
Dealing: Each day with 1-day notice
Cut-off time: 12 pm CET
Management Company: Alma Capital Investment Management (LU)
Investment Manager: Alma Capital Investment Management (LU)
Fund Managers: James Pulsford, Tom Grew
Countries where the fund is registered:
Luxembourg, Austria, Germany, France, UK, Italy, Switzerland, Singapore, Belgium, Ireland, Spain
Sustainability-related disclosures:
Environmental, social and governance (“ESG”) criteria have been integrated in the investment decision-making process. An ESG analysis is conducted for all target companies. This is done prior to any investment, but also on an ongoing basis. In cases where the ESG analysis process flags material sustainability risks for a particular investment, the Investment Manager will not consider making the investment, and will look to divest when such material sustainability risks arise for a particular investment. No index has been designated as a reference benchmark for this sub-fund. Further information can be found in the prospectus of the sub-fund. The extent to which the above-mentioned characteristics are met will be included in the annual report of the fund, as from the first report issued after 1 January 2022.
Identifiers:
Institutional USD Hedged Capitalisation share class
ISIN: LU1013117160
Ticker: AEJIUHA LX
Launch: 12 Jun 2014
Institutional GBP Hedged Capitalisation share class
ISIN: LU1013116949
Ticker: AEJIGHA LX
Launch: 12 Jun 2014
Institutional EUR Hedged Capitalisation share class
ISIN: LU1013116782
Ticker: AEJIEHA LX
Launch: 10 Dec 2014
Institutional JPY Capitalisation share class
ISIN: LU1013116519
Ticker: AEJPIJA LX
Launch: 10 Dec 2014
Institutional GBP Unhedged Capitalisation share class
ISIN: LU1152097108
Ticker: AEKJEGC LX
Launch: 17 Feb 2015
Institutional EUR Unhedged Distribution share class
ISIN: LU1870374920
Ticker: AEJLIED LX
Launch: 8 Mar 2019
Institutional EUR Unhedged Capitalisation share class
ISIN: LU1870374508
Ticker: AEJLIEC LX
Launch: 4 Feb 2019
Retail Clean JPY Capitalisation share class
ISIN: LU1744752707
Ticker: AEJRCJC LX
Launch: 28 Apr 2022
Retail JPY Capitalisation share class
ISIN: LU1013117327
Ticker: AEJPRJA LX
Launch: 28 Apr 2022
Documents
Subscribe to the Fund Monthly Newsletteravailable upon request