Daiwa SB Investments has launched the Luxembourg domiciled DSBI Japan Equity Sustainable Dividend Ucits fund – a sub-fund of the Daiwa SBI Lux Funds Sicav – and a version of the strategy that has been available since 2013 on a segregated basis.
Lead portfolio manager is Seiji Iwama at Daiwa SB Investments in Tokyo, who will seek mid-to-long term capital growth from equities or equities-related securities of Japanese companies. The strategy is focussed on total return, particularly sustainability of dividend payments, and looks for stocks offering consistent dividend payouts and low risk of dividend cuts.
The fund will be marketed to institutional investors across Europe including the UK. For initial investors it offers ‘P’ shares in yen, sterling, euro and dollar share classes with capped TERs. Following the offer period, there will be ‘I’ shares in the same currencies for institutional investors and ‘A’ shares for wholesale investors.
Yuhki King, head of Business Development and Client Relations of DSBI (UK) said: “We have launched the fund on the back of a very strong track record and superb downside protection that the strategy offers.”
“The fundamental, bottom up strategy invests in quality companies with low risk of dividend cuts. Given the growing interest in corporate governance in Japan, the universe of attractive stocks with dividend sustainability is expanding.”
Founded in 1973 in Tokyo, Daiwa SB Investments is majority owned by Sumitomo Mitsui Financial Group and Daiwa Securities Group. The manager claims total AUM of some $55bn globally and has additional offices in London, New York, Hong Kong, Singapore and Shanghai.