Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Japanese giant unveils small-cap value fund for European investors

Japanese giant unveils small-cap value fund for European investors

Japanese asset management giant Daiwa SB Investments has launched its top performing Japan Equity Small Cap Absolute Value fund into the UK and Europe.

The Luxembourg-domiciled fund has returned 19.17% annualised over three years to January 2017 compared with the peer group average of 12.55%.

Daiwa SBI said it will cap the $675 million (£555 million) strategy at around $1 billion.

It has an annual management fee of 0.8% for institutional clients and 1.2% for retail investors.

Japanese small caps account for approximately two thirds of the Japanese equity market.

Managed by lead portfolio manager Tatsuro Nigauri, the fund offers investors access to his approach which targets companies with sustainable mid to long-term earnings growth that are often under-researched by analysts and overlooked by investors.

Nigauri then works out a ‘fair price’ for each stock in the portfolio on a three to five year view by estimating an appropriate price-to-earnings ratio, taking into account the company’s growth potential.

The fund manager takes a long-term view and waits for the market to realise the intrinsic value of the stocks held in the portfolio, which typically holds between 100 and 150 stocks.

Nigauri said: ‘We expect Japanese small caps to continue to outperform large caps over the medium to long-term. These domestically-focused businesses are less affected by foreign exchange rates and economic developments in other countries.’

Daiwa SB Investments is working with fund distribution consultancy Harrington Cooper to promote its fund range in the UK market.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Alternative Ucits Retreat 2017

    Citywire Alternative Ucits Retreat 2017

  • Citywire Milan 2017

    Citywire Milan 2017

  • Citywire Paris 2017

    Citywire Paris 2017

  • Citywire Deutschland 2017

    Citywire Deutschland 2017

  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016