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Hargreaves cuts Schroder Tokyo from Wealth 50 on Rose's exit

Online stockbroker removes Schroder Tokyo from fund buy list on news of veteran Japan manager Andrew Rose's retirement.

Hargreaves cuts Schroder Tokyo from Wealth 50 on Rose's exit

Online stockbroker Hargreaves Lansdown has dropped Schroder Tokyo from its Wealth 50 fund buy list, following news of veteran Japan manager Andrew Rose's retirement after a 38-year career.

Hargreaves Lansdown investment analyst Dominic Rowles said Rose’s successor, Masaki Taketsume, who has been co-manager on the fund since 2017, did not have a long enough track record to merit a place on the buy list.

‘Taketsume hasn’t been in fund management long enough to convince us he'll deliver strong performance in the future,’ he said, in an update on the broker’s website. ‘All fund managers go through periods where their investment style is out of favour. But if a manager is less experienced, it's harder to have confidence they'll pull it back.’

Rowles acknowledged that Taketsume had worked closely with Rose for a number of years and would continue to employ the same approach. He also recognised that Taketsume was previously on Schroders' Japanese equity research team as a technology analyst since 2007.

‘But the Wealth 50 highlights managers we believe to be exceptional,’ said Rowles. ‘Those with long, successful track records and excellent performance potential. These are the things that give us confidence to hold onto a fund, even when the going gets tough.’

Schroder Tokyo's ejection from the Wealth 50 represents the first removal since Hargreaves radically slimmed down the buy list in January, rebranding what had been called the Wealth 150 and cutting 27 funds from the roster.

Rowles emphasised the broker was not suggesting investors sell the Tokyo fund.

‘We just feel that for making a new investment there are funds more likely to make the most of Japan's potential,’ he said.

Two Japan funds remain in Hargreaves' Wealth 50 list: Man GLG Japan CoreAlpha and tracker fund iShares Japan Equity Index, although dealing in both is currently suspended as Japan embarks on a 10-day national holiday.

Rose (pictured) announced he was retiring in February and will step down from his role in June, after a career spanning 38 years.  

The head of Schroders’ Japanese equities team has managed the Tokyo fund since 2004 and the Schroder Japan Growth (SJG) investment trust for 12 years, with the running of both to be handed to Taketsume.

Over the last decade, Rose’s £2.2 billion Tokyo fund has delivered returns of 154%, beating the 149% generated by the Tokyo Stock Exchange 1st section index and the 147% from the average fund in its Investment Association Japan peer group.

Meanwhile, the £231 million trust has produced 10-year net asset value total returns of 190%, according to Numis data.

Taketsume moved from Japan to London to work with Rose, after becoming a fund manager in 2017. Last September he was also appointed to help Rose on the Omnis Japanese Equity fund he runs for the Openwork financial adviser network.

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Masaki Taketsume
Masaki Taketsume Average Total Return:
101/124 in Equity - Japan (Performance over 3 months)
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Andrew Rose Average Total Return:
56/95 in Equity - Japan (Performance over 3 years)

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