I’ve bought back the shares in FGEN 13933 for 10k.

With the current volatile markets, I’ve sold FGEN for a short term profit of £964.00, including the earned dividend but not yet received.

If you look back to the last oil shock in 2022, it was a positive for Renewables.

UK households are being warned that their annual energy bills could increase by £500 because of the war in the Middle East.

After the US and Israel launched attacks on Iran, the conflict in the region has dramatically unfolded, raising fears over the supply of oil and liquified natural gas (LNG) from the Gulf.

Yorkshire Dales Deals

QatarEnergy has stopped its production of LNG, taking one of the world’s top suppliers off the market indefinitely. Meanwhile, oil tanker traffic through the Strait of Hormuz has mostly ground to a halt.

As a result, latest figures show the price of UK wholesale gas almost doubled since the start of the war – a situation described as “scary” by consumer champion Martin Lewis. Brent crude, the global benchmark oil price, has gone up more than 10 per cent.

Why Electricity Is Linked to the Cost of Gas.

To answer the question “why is the cost of electricity fixed to the price of gas”, we need to look at the UK’s energy market.

The UK uses a lot of energy. And to meet the energy needs of everyone, we need to pull from gas, renewables, nuclear and oil.

Since 2005, the UK has run its energy market as one large market that covers Scotland, England and Wales. So there’s just one market price for the whole of Great Britain. As a result, we fix the price to the most expensive form of energy, which is currently gas.

This means that we link the price of electricity to the price of gas. As gas is extremely expensive, this commodity heavily drives up the market price of energy.

If we’re running low on wind energy during certain months, we’ll have to make up the shortfall somewhere. And if gas is always the first port of call during shortages, it will continue to dominate the market price for energy and drive up the overall cost of electricity.

So, regardless of whether wind energy is cheaper to
produce, it continues to match the price of gas and explains why the overall cost of energy is so high.

Mar. 02, 2026

Steven Cress, Quant Team

SA Quant Strategist

Summary

• The U.S.-Israel airstrikes are a major catalyst impacting global markets, just hours following sweeping bans on the use of Anthropic’s AI technology.
• The S&P 500 notched its worst month since March 2025 as war in Iran intensifies, and risk-off sentiment likely dominates amid hotter-than-expected wholesale inflation.
• January 2026 Core CPI (2.5%) and PPI (2.9%) rose Y/Y; headline CPI cooled to 2.4%, supporting a “soft landing” narrative.
• In the search for safety and income, Iran’s escalation and January’s inflation shock may prompt investors to buy fallen stocks as they assess new geopolitical risks and signs of companies passing costs onto consumers.
• Consider three top-rated dividend stocks based on Seeking Alpha’s quant rankings. They offer an average dividend yield FWD of 5.64%, growth and profitability to support their dividends, and A+ EPS Revisions.
• I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.

Trifecta Shaping U.S. Markets: Iran War, AI, Wholesale Inflation

Coordinated U.S.-Israel airstrikes on Iran, the blacklisting of Anthropic’s (ANTHRO) artificial intelligence, and January wholesale inflation have prompted a spike in market volatility.

Last week, economic data showcased hotter-than-expected core wholesale prices, up 0.8%. U.S. Treasuries rallied Friday morning, driving yields lower across the curve, as the 10-year Treasury yield dipped below 4% for the first time since November 28, 2025. Overall, the PPI news sent Wall Street tumbling, with the S&P 500 notching its worst month since March 2025.

Historically, when PPI (2.9%) outpaces CPI (2.4%), it puts S&P 500 margins under pressure, contributing to the volatility we’ve seen in tech, along with AI-driven and credit fears. Companies can only absorb so much price pressure before passing it on to the consumer. Over the last five years, some of the CPI price increases include:

• Gas Utilities: +46.2%
• Fuel Oil: +45.8%
• Transportation: +43%
• Electricity: +36.8%
• Gasoline: +36.2%
• Food away from home: 30.2%
• Shelter: +28.3%
• Family Health Insurance: +26.5%
• Food at home: +25.5%
• Used Cars: +19.9%
• New Cars: +19.2%

January’s 3.6% year-over-year increase in wholesale prices likely reinforces that the central bank is unlikely to cut rates soon. This is likely to create opportunities for investors to diversify beyond past tech winners amid a shift away from concentrated large-cap growth stocks.

Then, consider the latest geopolitical shocks from the escalation of war in Iran and risk-off sentiment. The Strait of Hormuz is considered one of the world’s most important oil transit points. Following the U.S.-Israel airstrikes, the likelihood of supply chain and oil disruption has increased, creating a surge in oil prices and potential inflationary and economic growth impacts. The impact on inflation and other macroeconomic drivers boils down to the duration of the conflict: the shorter the duration, the more acute the impact; the longer the duration, the broader the economic impact, which could drive yields lower. For now, it’s likely to have little effect on U.S. monetary policy. So keep calm and carry on. Agar Capital also highlights, “Disciplined patience is prudent amid uncertainty, as the true market impact will emerge after initial volatility subsides,” which is why REITs that offer income and AI infrastructure qualities may offer ways to hedge against macro and geopolitical headwinds.

3 Top Dividend Stocks to Buy Now

Geopolitical headwinds, tariffs, and “sticky” costs of living (food, healthcare, and shelter, to name a few) have created uncertainty for investors. The markets—especially growth and tech stocks—are also sensitive to rates, especially as they pertain to investment in the AI infrastructure race, which impacts companies’ growth and profits. Real Estate Investment Trusts (REITs) are unique opportunities in the AI infrastructure “arms race.” As hyperscalers spend hundreds of billions on AI development, REITs act as the pick-and-shovel landlords and infrastructure providers for the physical hardware required to run these models. REITs aren’t just leasing space; they’re at the center of access for AI infrastructure buildout—opportunities delivering income and a hedge against inflation and some of the latest macro headwinds.

How I Found Top Dividend Stocks

Using the Seeking Alpha stock screener, I filtered for top real estate stocks with Strong Buy Quant Ratings and solid forward earnings growth estimates and profitability. Seeking Alpha Quant Ratings are generated by a proprietary model that analyzes over 100 metrics for each stock relative to sector peers and grades them across five factors: Growth, Value, Profitability, Earnings Revisions, and Momentum.

1. Getty Realty Corp. (GTY)

• Market Capitalization: $1.96B
• Quant Rating: Strong Buy
• Sector: Real Estate
• Industry: Retail REITs
• Quant Sector Ranking (as of 3/2/2026): 8 out of 170
• Quant Industry Ranking (as of 3/2/2026): 1 out of 24

One of my top REITs for 2025 and one of the largest owners of freestanding convenience and automotive retail properties, Getty Realty, offers an attractive opportunity for long-term dividend investors. With over 1,174 properties, 27 consecutive years of dividend payments, and 13 consecutive years of dividend growth, the net-lease REIT specializes in acquiring automotive and single-tenant real estate.

Getty’s 5.91% forward dividend yield is driven by earnings growth and a stable business model that relies heavily on traditional gas stations and recession-resilient services like collision centers, express tunnel car washes, oil changes, and tire shops, which offer steady cash flow and consistent growth.

Interest rate cuts can benefit the company’s model long-term by freeing up capital. The company finished 2025 strong and well-positioned for 2026. As highlighted in its Q4 2025 earnings, GTY’s 2025 Fiscal Year AFFO earnings were up 8.1% to $141.M. The company showcases a strong balance sheet, 99.7% occupancy, and nearly 100% YTD rent collections. Getty is highly profitable, as showcased by its A- Profitability Grade.

The company’s annual rent increased by nearly 12% in 2025, while AFFO per share was up 5% for Q4 and 3.8% for the full year at the high end of their guidance. While GTY trades at an attractive valuation, the company also maintains bullish momentum to outperform the sector median quarterly over the past year. REITs perform well in lower-rate environments due to cheaper debt costs and more attractive yields relative to bonds, helping boost demand and share prices. As such, my next stock is a diversified REIT.

Top 3 Dividend Stocks As A Hedge: Iran Escalation And Inflation Hotter Than Expected

2. W. P. Carey Inc. (WPC)

• Market Capitalization: $16.36B
• Quant Rating: Strong Buy
• Sector: Real Estate
• Industry: Diversified REITs
• Quant Sector Ranking (as of 3/2/2026): 7 out of 170
• Quant Industry Ranking (as of 3/2/2026): 2 out of 12

One of the largest net lease REITs in the U.S. and Europe, W. P. Carey Inc. is diversified with a focus on mission-critical assets like warehouses used for its tenants’ essential operations. Through portfolio diversification and record investment in activity in 2025, WPC has capitalized on successful rent escalations and rising real estate values.

WPC has a portfolio of 1,682 properties, 371 tenants, and a 98% occupancy rate in geographically diverse locations and industries. Some of its top net lease tenants include Extra Space Storage, Dollar General, and Life Time Fitness, with a weighted-average lease term of 12 years.

WPC maintains a large, well-capitalized balance sheet with $22.8B in total enterprise value. Its diverse tenant holdings and locations have benefited from the rising rate environment. Not only has WPC beat earnings for several quarters, but its recent Q4 2025 adjusted FFO per share of $1.27 beat by $0.03, and revenue of $444.55M topped by a whopping $11.27M. In the Q4 earnings call, WPC President & CEO stated:

“2025 was a standout year for W. P. Carey, reflecting successful execution across our business producing strong performance for the year and laying the foundation for attractive, sustainable growth that supports long-term value creation. The 5.7% AFFO growth we generated for the year was among the best in the net lease industry, reflecting our record investment activity, sector-leading rent growth and strong portfolio performance. The dividends we paid, combined with the appreciation of our stock price, provided our shareholders with a total return of 25% for the year, placing us in the top tier of publicly traded REITs.”

With persistent inflation and WPC’s track record of increasing rents, leases that include CPI-linked rent increases and scheduled quarterly rent adjustments offer positive tailwinds for the organization. In addition to ranking among our top-rated diversified REITs, WPC offers a 4.93% dividend yield FWD and has consecutively paid a dividend for 27 years, demonstrating its strength and commitment to shareholders. Not only does the company’s balance sheet look great, but WPC also trades at a relative discount and offers strong momentum.

WPC Valuation & Momentum

WPC has a C+ valuation rating. With a trailing P/AFFO of 15.02x, a 2.41% difference to the sector, we believe WPC is trading at a discount with ample room for continued growth. Quarterly, the stock’s price-performance has outperformed the sector median, as evidenced by its momentum grade below.

Given WPC’s strong characteristics and discounted price, we believe it will capitalize in the current environment, along with my final REIT pick.

3. Alpine Income Property Trust, Inc. (PINE)

• Market Capitalization: $321.68M
• Quant Rating: Strong Buy
• Sector: Real Estate
• Industry: Diversified REITs
• Quant Sector Ranking (as of 3/2/2026): 5 out of 170
• Quant Industry Ranking (as of 3/2/2026): 1 out of 12

I wrote about Alpine Income Property Trust in a January article titled Top Dividend Stocks for Uncertain Times. The stock is up 13.5% over the past month and recently raised its dividend by 5.3% following strong Q4 2025 earnings. Offering a strong track record of growth and a diverse portfolio of 128 properties across 34 states and a 99% occupancy rate, top tenants include Lowe’s Companies, Inc. (LOW), DICK’S Sporting Goods, Inc. (DKS), and Walgreens.

The high-quality, retail net-lease portfolio offers sector-leading AFFO growth, a 50% increase in the quarterly dividend since 2020, and a stronger margin of safety given its stickier tenants.

John Albright, President and CEO, reported “a strong fourth quarter highlighted by 22.7% growth in AFFO per common share and $142.1 million of investments to complete an annual record of $277.7 million of investments for 2025.”

PINE’s all-around fundamentals include exceptional Growth, Momentum, and EPS Revisions, complemented by solid profitability while trading at a relative discount. Like WPC, rent escalations and higher interest have driven revenue and earnings growth to support its attractive dividend yield FWD of 6.09% vs. the real estate sector median. PINE’s dividend has a 5Y growth rate of 6.81% and has been paid out consistently for six years since its 2019 IPO.

Despite its bullish momentum, PINE maintains an attractive valuation, with a forward P/AFFO of 9.33x, a 34% discount to the sector. As investors monitor the latest developments amid geopolitical headwinds, inflation, and the AI Infrastructure investment, consider three top REITs as hedges that are offering a track record of income.

Conclusion: Top REITs as an Income and Safety Hedge

Global conditions and companies offering unique exposure to income production and AI infrastructure spending may offer investors an edge. SA Quant identified three fundamentally Strong Buy REITs with an average dividend yield FWD of 5.64% and diversified offerings.

In this volatile environment, it’s crucial to consider the fundamentals when selecting stocks. We have many stocks with strong buy recommendations, and you can filter them using Stock Screens to suit your specific investment objectives. Alternatively, Alpha Picks might be ideal if you’re interested in two monthly stock picks of the top ‘strong buy’ quant stocks. Seeking Alpha’s quant ratings and investment research tools help to ensure you are furnished with the best resources to make informed investment decisions while taking the emotion out of investing.

If you’re looking for more frequent investment ideas, we launched the PRO Quant Portfolio in June. It’s a weekly rebalanced selection of our Top 30 Quant Strong Buy stocks, spanning multiple regions and market caps. Happy Investing!

More on my IG service

• I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.

I’ve bought for the SNOWBALL 16111 shares in RESI Residential Secure Income ahead of the xd date for 9k.

Fiona Craig

LSE:RESI

20 February 2026

Residential Secure Income plc (LSE:RESI), the UK-focused real estate investment trust specialising in independent retirement living and shared ownership housing, has announced an interim dividend of 1.03 pence per ordinary share. The payment will be made as a Property Income Distribution from its tax-exempt rental operations for the financial year ending 30 September 2025.

The company reiterated that it intends to continue quarterly dividend payments under the REIT framework while carrying out the orderly wind-down of its portfolio, a process approved by shareholders in 2024. Although the strategy now centres on asset disposals and capital preservation, the board signalled that income distributions to investors will continue during the managed realisation phase.

Residential Secure Income operates through its Registered Provider subsidiary, ReSI Housing Limited, partnering with public and private developers to deliver regulated, long-term affordable housing solutions. Its investments have historically focused on inflation-linked rental streams from housing for older residents and shared ownership customers.

From a financial perspective, the outlook remains pressured by declining profitability and uneven revenue performance. Technical indicators show weak share price momentum, with the stock trading below key moving averages. However, positive free cash flow generation and a relatively high dividend yield offer some support. The balance sheet picture is less clear following a marked shift to zero reported debt in 2025.

I’ve bought for the SNOWBALL another 2.5k of FGEN, ahead of their dividend xd date tomorrow.

If you look at the VWRP share below, you will note the price is back to the level of October 2025, it could bounce from here or fall further, it doesn’t matter as it’s only a comparator share.

Since October the SNOWBALL has earned 5.3k in dividends for re-investment. That income re-invested will earn around an extra £400 of income this year.

What’s your retirement plan ?

A chart is the sum views of everyone in the market and therefore should be of interest to you

I’ll use the blog comparator share, so we are all singing from the same hymn sheet, so to speak.

In general:

If the price is above the blue cloud, the sun is shining on your position and the only consideration is to book part or all profits.

If the price is below the cloud and the cloud turns from blue to grey, the share is raining on your parade.

If the price is in the cloud, watch to see which way it breaks.

Note as in last April, when prices fell out of bed and trades away from the cloud, if you want to buy, you can be late to the trade.

Nothing but nothing works all the time apart from one day you will die and until then you will have to pay taxes.

Faith Glasgow explains the benefits of investing in funds with contrasting styles or approaches, and asks a range of experts to name their top fund pairings for several major regions.

18th February 2026

by Faith Glasgow from interactive investor

Should you hold several funds covering the same market? Certainly, articles about diversification often warn of the dangers of stock overlap between funds, resulting in unwitting over-exposure to particular companies.

However, all markets comprise a range of businesses in terms of size, sector, and other characteristics such as growth, value, or a dividend focus – so there’s a interesting case for combining funds that adopt complementary styles or focuses to cover the same region.

Obvious pairings include growth-focused holdings with those seeking out undervalued businesses, and pairs concentrating on different market capitalisations.

Not only can such combinations provide broader (but still selective) coverage of that market, but they may respond differently to wider macroeconomic issues such as interest rate trends, inflation or US tariff imposition – giving you a more robust portfolio overall. 

To give you some ideas for attractive pairings, we’ve asked some experts for their recommendations across several major regions.

Global

Global fund managers have a huge universe of stocks from which to select, making a best-ideas philosophy – where the manager does a lot of filtering and deep research – an attractive starting point. On that basis, Sheridan Admans, founder of Infundly, a UK-based investment consultancy, suggests pairing the WS Blue Whale Growth I Sterling Acc and WS Havelock Global Select A GBX Acc funds.

Although both funds take a similarly high-conviction approach, they come at it from very different starting points in regard to portfolio construction, risk exposure and sources of return.

Blue Whale Growth uses bottom-up selection processes to identify just 25 to 35 large-cap stocks from developed markets, particularly North America. It focuses on businesses with real potential to grow and become more profitable in the long term, and attractive valuations bearing that potential in mind.

“This structure gives Blue Whale strong upside participation when global growth leadership is concentrated in high-quality franchises with durable earnings and pricing power,” Admans explains – although the portfolio can be relatively volatile.

In contrast, Havelock Global Select’s 30 to 40 holdings are selected on the basis of value and quality, “where valuation, balance-sheet strength, asset backing or behavioural mispricing create attractive long-term return potential”.

There’s a bias towards mid- and smaller-cap businesses and away from the crowded mega-cap growth space, and a more even spread across the US, UK and Europe, reducing reliance on any single regional growth engine and helping to lower volatility.

The two strategies form a complementary global equity pairing, says Admans. “One is designed to capture sustained growth in dominant franchises through a concentrated large-cap portfolio; the other seeks out a concentrated set of value and quality-led ideas, exploiting mispricing and structural inefficiencies.”

The US

At Nedgroup, multi-manager portfolio manager Madhusree Agarwal offers a markedly different approach to US investment.

Nedgroup makes strategic use of index tracking funds to deliver returns for investors, and for US coverage that includes pairing the S&P 500at market‑cap exposure with a S&P 500 Equal Weight ETF. As Agarwal observes: “On paper, they hold the same companies. In practice, they deliver very different outcomes.”

There are plenty of index fund and ETF options to gain exposure to the S&P 500 index, however the most-popular options among interactive investor customers are the accumulating and distribution versions of Vanguard S&P 500 ETF USD Acc  VUAA

 and Vanguard S&P 500 UCITS ETF GBP  VUSA

Two equal weight ETF options are Invesco S&P 500 Equal Weight ETF Acc GBP  SPEX

 and Xtrackers S&P 500 EW ETF 1C GBP  XDWE

Agarwal explains that the market‑cap weighted S&P 500 “remains the most efficient way to capture long‑term US equity growth, but it naturally becomes concentrated in the biggest winners, particularly during periods when mega‑cap growth stocks dominate markets”.

As a result, investors can end up with far more concentrated exposure to a small number of names than is desirable. By pairing a standard S&P 500 ETF with an equal-weight approach counterpart, she adds, risk is spread more evenly and rebalancing takes place regularly.

In addition, Agarwal suggests complementing this large‑cap pairing with S&P 600 small‑capexposure. That further broadens the source of returns for investors, providing greater sensitivity to domestic US growth and higher use of debt to leverage returns. Options include iShares S&P SmallCap 600 ETF USD Dist GBP  ISP6

 and Invesco S&P SmallCap 600 ETF  USML

“Importantly, the S&P 600 includes profitability screens, which improves quality relative to many broader small‑cap indices,” she notes. Rather than betting on a single style being ‘right’, “the aim is to build US equity exposure that can adapt as market leadership changes, delivering a smoother and more resilient outcome”.

The Shard, London, towers over a Union flag.

The UK

For the UK, Admans identifies two valuation-led conviction-based funds that focus on different parts of the market cap spectrum – and also different stages of the recovery cycle.

The large-cap bias of Invesco UK Opports (UK) (No Trail) (Acc) means that “its opportunity set is global in revenue terms, with many holdings generating cash flows well beyond the domestic economy,” he explains.

The managers look for companies trading at discounts to their own history and to peers, often where uncertainty, regulation or cyclical pressure has weighed on investor sentiment.

“This leads naturally to exposure to established, cash-generative franchises, particularly in areas such as financials, healthcare and consumer staples, where balance sheets and dividends provide support while valuation normalises,” he adds.

Aberforth Smaller Companies Ord  ASL

 investment trust, in contrast, is firmly focused on small businesses with balance sheet strength and sustainable dividends, but “where mispricing has been both more persistent and more pronounced” than the Invesco fund.

ASC’s portfolio comprises around 80 companies, but is very much conviction-led, with “stakes of over 10% in 28 companies” and a strong focus on active engagement with management as part of the turnaround process.

As Admans points out, the pairing works because “Invesco provides exposure to UK-listed franchises that can re-rate as pessimism fades, offering income and stability while investors wait; Aberforth complements this with exposure to deeply undervalued smaller companies, where any improvement in liquidity, confidence or M&A activity can drive outsized returns.”

UK smaller companies

Meanwhile, for smaller company aficionados, Ryan Lightfoot-Aminoff, an analyst at Kepler Partners, suggests the pairing of Rockwood Strategic Ord  RKW

 investment trust and IFSL Marlborough UK Micro Cap Gr P Acc fund for their contrasting style and approaches to portfolio construction.

RKW, says Lightfoot-Aminoff, has done very well through “building a highly concentrated portfolio of out-of-favour micro caps, taking sizeable stakes and helping to instigate a turnaround, with the goal of selling after around three to five years”.

The Marlborough fund, in contrast, comprises a highly diversified portfolio of around 150 of the smallest companies in the market, filtering out some parts of the economy before analyzing and picking stocks, “with a preference for growth stocks”.

The contrast in terms of concentration, active engagement and growth versus value tilts makes them a useful pairing for this rich hunting ground.

Europe

Peter Walls, manager of Unicorn Mastertrust B, a fund of investment trusts, highlights the fact that although smaller companies can outperform larger counterparts in most markets, “there are periods when they lag behind and then catch up in short order”.

Because it’s so hard to know when those reversals will occur, it particularly pays investors to be diversified across both large and small companies. In Europe, he suggests Fidelity European Trust Ord  FEV

 and The European Smaller Companies Trust PLC ESCT 

to cover the market-cap spectrum.

Both have well-regarded managers, but “Fidelity European has nearly all its assets invested in companies valued at more than £10 billion, while ESCT holds companies with an average market capitalisation of £1 billion and rarely strays above £3 billion”.

Another European pair

Taking a more growth/value-based tack, Ben Yearsley, an investment consultant at Fairview Investing, selects the Montanaro European Smaller Ord  MTE

 fund for a fairly concentrated portfolio of small to mid-cap quality growth companies with strong balance sheets, “often in niche areas that are growing”.

He pairs that with WS Lightman European R Acc, a “proper value fund looking for cheap companies that have started to turn the corner”. Again, though, a robust balance sheet is a must.

Silhouettes of people walking in Chaoyang district, Beijing, China.

China

For effective risk-managed exposure to China’s growth story, Admans selects Jupiter China Equity Fund U1 GBP Acc, a core large-cap fund with a preference for well-established businesses.

“It aims to capture long-term earnings growth through policy-supported structural themes, such as domestic consumption, expansion of the region’s financial market, and digitalisation, while maintaining risk discipline in a volatile and politically sensitive market,” he says.

His suggested pairing is Fidelity China Special Situations Ord  FCSS

,which fishes in the same ocean but takes a much more idiosyncratic approach. Because FCSS is “structured as an investment trust, it has the flexibility to use gearing, take short positions, and invest selectively in less liquid or under-researched parts of the market”.

The fact it is an investment trust also gives potential for a further performance ‘kick’ when sentiment improves towards China and the discount narrows. “The pairing works because it separates core exposure from opportunistic return drivers,” Admans adds.

Japan

For effective coverage of the Japanese market, Ben Mackie, a senior fund manager at Hawksmoor Fund Managers, also combines investment trusts and funds with contrasting investment styles and market cap exposures.

His first pick is Nippon Active Value Ord  NAVF

 investment trust, which has a high-conviction portfolio with a small-cap focus. “The managers take significant stakes in smaller companies trading on cheap valuations and follow a strategy of active engagement that can range from constructive advice on operational matters to corporate activity,” Mackie observes.

“NAVF is one of the purest ways of playing the Japanese corporate governance reform story, while the managers’ willingness to effect change and unlock value at individual companies drives idiosyncratic returns.”

Lazard Japanese Strategic Equity EA Acc GBP is selected as a good complement. Mackie explains that while its fund managers can go down the market-cap spectrum (and recently have) the portfolio tends to have a bias to larger companies.

He adds: “Although valuation conscious and often contrarian, the portfolio is managed in a pragmatic manner resulting in balanced, style agnostic exposure to the Japanese market. Stock selection should be the main driver of returns with the high-conviction portfolio a bottom-up collection of convex positions, with a risk management overlay to ensure sensible factor and sector diversification.”