Asset Management One Co., a Mizuho Financial Group Inc. subsidiary, plans to launch a new active fund focusing on large-cap Japanese stocks. The fund aims to raise 500 billion yen ($3.4 billion) over the next five to ten years. In an interview, Noriyuki Sugihara, the president of Asset Management One Co., said that the fund will invest in about 50 large-cap shares.
He believes that an environment conducive to asset building through medium to long-term investments in Japanese equities is emerging. The Japanese government is encouraging individuals to shift more funds from savings to investments. This is to help boost the financial holdings of one of the world’s oldest populations.
The total net asset value of publicly offered investment trusts in Japan reached a record high at the end of June. This was driven by a brisk stock market and the popularity of new tax-free investment accounts called NISA. However, these funds have focused heavily on foreign equity investment trusts.
There has been limited demand for products targeting Japanese shares.
Japanese large-cap equity fund launch
Sugihara noted that very few equity funds in Japan currently specialize in large-cap stocks.
The company plans to start managing the fund with its own money. It will solicit investors after building up a track record of investment. Asset Management One Co.
As of the end of July, it manages over 69 trillion yen ($470 billion). The company has also launched a crossover fund that supports both listed and unlisted companies from the early stages of being unlisted to post-IPO. These strategic moves underline Asset Management One Co.’s confidence in sustaining a robust rally in Japanese equities.
Equities have largely recovered from the significant losses experienced in August. Sugihara attributed the sharp drop to adjustments by short-term momentum traders and asserted that the market’s fundamental strength remains unchanged.
