IN FO­CUS: TOY­OTA ‘ HY­BRID CARS WILL BE AROUND FOR LONGER THAN YOU THINK’

The Daily Telegraph - Your Money - - INVESTING -

The whole car in­dus­try in Ja­pan has al­ways been well re­garded and gen­er­ally quite highly priced.

As a re­sult we have lacked op­por­tu­ni­ties to buy into the sec­tor, but car­mak­ers’ shares have now fallen be­cause of the hype around elec­tric ve­hi­cles and au­ton­o­mous driv­ing.

Our view is that the next move in the in­dus­try is prob­a­bly to­wards hy­brid cars rather than pure elec­tric ve­hi­cles. Toy­ota is the big­gest pro­ducer of hy­brids in the world by some mar­gin and we think it is strate­gi­cally very well placed for what­ever changes are go­ing to come.

For pure elec­tric ve­hi­cles there are a lot of ques­tions that need to be an­swered about elec­tric­ity sup­ply and charg­ing in­fras­truc­ture so hy­brid cars could be around for longer than you think.

Even when we do move to­wards elec­tric ve­hi­cles, we think Toy­ota can af­ford to in­vest in re­search and de­vel­op­ment in or­der to re­main com­pet­i­tive. It al­ready has a fan­tas­tic amount of cash so it is well pre­pared for what­ever un­cer­tainty is out there.

In­vestors have shied away from the car in­dus­try, but we are pre­pared to get in there early and wait.

Do you have an ex­am­ple of a bank you like?

Mit­subishi Bank makes 40pc of its earn­ings over­seas and has a stake in Mor­gan Stan­ley as well as own­ing banks in In­done­sia and Amer­ica.

It is con­sis­tently mak­ing $8bn (£6.3bn) a year of net profit and is trad­ing very cheaply. It is about as low as it has been, yet, when we look at it, it has never been stronger.

Do you in­vest in the fund?

I have a rea­son­able amount of money in­vested in the fund – prob­a­bly be­tween 10pc and 20pc of my in­vest­ments in the stock mar­ket.

How are you paid?

We are paid a salary and through a fee share. If we don’t per­form, clients will leave and we get paid less.

What would you have been if not a fund man­ager?

I was five min­utes away from be­ing a char­tered ac­coun­tant in 1987 when I saw an ad­vert to be a City an­a­lyst. I thought that was much more in­ter­est­ing and for me that has def­i­nitely proven to be true.

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