Sumitomo Mitsui Trust Group (SuMi Trust) has launched Japanese equities Ucits funds. Sakigake High Alpha – Japan Thematic growth and FGS – Japan Strategic growth, are now available for international institutional investors with adherence to the Ucits format.
Both strategies have a track record of over 15 years as Japanese domestic investment vehicles and their current strategy AUMs are both approximately $1bn. Performance will be benchmarked against Topix. The funds offer JPY as well as USD hedged and EUR hedged share classes, and have an initial capital of $20m each.
Sakigake High Alpha – Japan Thematic growth adopts a mixture of thematic top-down and fundamental research bottom-up approach to stock selection. It invests in carefully selected large and mid-cap Japanese companies, with strong mid-term earnings growth, which benefit from social and industrial changes in the country, such as the increase in automation and growth of e-commerce. Its top holdings include Tokyo Electron Limited and Keyence Corporation. The fund is managed by Katsunori Ogawa, chief portfolio manager, and Yoshiaki Segawa, senior portfolio manager, both based in Tokyo.
FGS – Japan Strategic growth fund comprises Japanese companies which serve the product and services markets, such as the industrials and materials sectors. Through a stock picking approach which analyses demand and supply shortages as key growth drivers of a business, the fund’s strategy aims to find companies which are able to generate value-add in the supply chain. The portfolio comprises a selection of between 30 and 50 stocks – including the largest chemical company in Japan, Shin-Etsu Chemical, and construction equipment manufacturer Komatsu – with the aim to achieve sustainable long-term growth. Nagato Kimura is the chief portfolio manager for this strategy and he is based in Tokyo.
In addition, SuMi Trust has also introduced Ucits Japan Small Cap II (JSC II) fund, which is a sister fund of the current Japan Small Cap (JSC) fund and invests in small cap stocks with high growth potential. Its portfolio comprises more liquid stocks than the JSC fund and offers lower investment management fees. The Japan Small Cap (JSC) fund currently has over $520m AuM as of 31 May 2018.