Japanese Tracker ISA?

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Pheno
Pheno Posts: 48 Forumite
in ISAs & tax-free savings
Hi all,

Does anyone know if it is possible to use a UK ISA to invest in a Nikkei 225 tracker fund? I've been searching the internet for a few days to find out but have had no luck. (and meanwhile the Nikkei 225 has gone up 2.5% !! :o ).
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  • carnet
    carnet Posts: 501 Forumite
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    The two Japanese tracking UT/OEICS I know viz. HSBC Japan Index and Legal & General Japan Index track the FTSE World Japan Index.

    These can both be accessed via an ISA.

    This is not and should not be construed as investment advice.
  • Pheno
    Pheno Posts: 48 Forumite
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    carnet wrote:
    The two Japanese tracking UT/OEICS I know viz. HSBC Japan Index and Legal & General Japan Index track the FTSE World Japan Index.

    These can both be accessed via an ISA.

    This is not and should not be construed as investment advice.

    Hi carnet, thanks for that. Do you know if the World Japan index contains the same companies as the Nikkei 225? I came across it a few times in my searches and got the impression it covers different companies (japanese multinationals?).
  • carnet
    carnet Posts: 501 Forumite
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    As I don't personally invest into tracker funds ( would always go for an actively managed fund run by a proven stockpicker ;)) I've never really had to think about it.

    I should imagine that the difference between the Nikkei 225 and the FTSE World Japan Indices is very similar to the difference between the FTSE 100 and the FTSE All Share Indices.

    If so, then both Japanese indices will certainly contain their biggest (multi-national) companies with the FTSE World Japan Index just more broadly based and less top heavy with them.
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
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    I am also eyeing Japan .. Its had 15 years of stagnation and it looks like its coming to an end. .. will post a fund choice once I settle on one.
  • Midas
    Midas Posts: 596 Forumite
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    Yes I have been considering a bit of exposure to Japan as instinct surely says they're due a bit of growth again after all these stagnant years.

    However, I think I'd prefer an actively managed fund in this case - so any ideas greatly appreciated.
    Midas.
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
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    technically the Nikkei has had a break out on the upside on the charts... so it looks like a good multi year bet !

    I mean to break a 15 year trend is a very significant signal ! you know, if it pans out ! and it is still obviously early days.. were talking a siesmic shift ! literally even for Japan with its quakes... :)

    The performance of the other stock markets in asia supports this as well as rest of the world.. So it definetly looks like a good long term bet !

    Germanys another one thta I am eyeing... but Japan looks better.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    The politics in Japan at present are very interesting.The PM is trying to bust up the Japan postal service which is really a giant bank which underpins the whole Japanese corporate system and blocks the move to a proper free market.

    He failed to get a vote through parliament on this and has now called an election, simultaneously splitting his own party by kicking out all the MPS who voted against him.

    Splitting his party could mean the opposition gets in for the first time effectively since WW11. :eek: Boy would that be a change.:D

    So it could be a bit of an "endgame" in Japan now.

    Will the Japanese people go for it or will they be too wimpish (again)? If the opposition gets in, will they make the changes the PM wants anyway?

    Perhaps the market thinks that change will happen either way :)
    Trying to keep it simple...;)
  • carnet
    carnet Posts: 501 Forumite
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    Midas wrote:

    However, I think I'd prefer an actively managed fund in this case - so any ideas greatly appreciated.

    Would love to but, unfortunately, FSA rules prohibit the giving of such specific "advice" here.
  • Pheno
    Pheno Posts: 48 Forumite
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    Well I've put some money in HSBC Japan tracker so we'll see what happens! Really annoying I couldn't do it instantaneously when I wanted to at the beginning of last week - cost me about 500 quid! :)

    I might look into actively managed funds, but I've heard lots of bad press saying that in the long run they on average underperform the trackers anyway - especially once fees are taken into account. Not saying that is correct - just that it has been enough to put me off making the extra time investment up till now.
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    I might look into actively managed funds, but I've heard lots of bad press saying that in the long run they on average underperform the trackers anyway

    That can be so right but also so wrong at the same time. It shouldnt put you off though. One big advantage of a number of managed funds is that they can focus on more specific areas than trackers, mostly down to lack of availability of trackers in those areas. Some sectors just do not have trackers and not investing in those sectors can cost you more.

    Ruling out managed funds on the very small difference is cost can cost you far more.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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