SMALL investors who are nervous about the prospects for the Hong Kong market would be wise to keep an eye on the new Japan fund launched recently by Lloyd George Management.
When it starts to invest in June, the LG Japan Fund will concentrate on Japan's smaller companies. ''Japan has an emerging market of smaller, high-growth earnings that we think are pretty interesting,'' said Lloyd George Management associate director Stephen Bradley.
''The Nikkei Index hit the bottom a long time ago and just dragged its way through 1993. We think there's very little downside in Japan.'' The fund is an open-ended one authorised in Hong Kong and has a minimum investment of US$10,000 (HK$77,200). Its initial subscription period will last until June 2, during which shares in the fund will be available at the initial offer price of US$10.
The fund will be managed by the Lloyd George team including company founder Robert Lloyd George and will be monitored daily by Jacob Rees-Mogg.
The success of the fund will depend in part on the results of an intensive research programme to identify companies. Further signs of a real recovery in the Japanese market will also be crucial.
''The yen has peaked and is now likely to fall further,'' Mr Bradley said. ''This will benefit exporters and boost company earnings dramatically. Already this year, the Japanese market has shown gains where other regional markets have retreated.'' Special attention would be paid to companies in the west of Japan, where Mr Bradley said there was a higher level of trade with the rest of Asia.
