EI Sturdza launches Strategic Japan Opportunities Fund

EI Sturdza Investment Funds launches the Strategic Japan Opportunities Fund with Rheos Capital Works

The Japan story:

  • Japanese markets were volatile from 2003 to 2012, especially large cap stocks in the TOPIX Core 30.
  • During this 10-year period, 66% (1,705) of Japanese listed companies rose, with an average return of 110%, most of which were small-cap and mid-cap growth companies (excluding the financial sector).
  • Since the introduction of “Abenomics” in 2012, 85% (2,646) of listed Japanese companies rose (excluding financials), with an average return of 99%.

EI Sturdza Investment Funds (“EI Sturdza”) announces the launch of the EI Sturdza Strategic Japan Opportunities Fund (“the Fund”), managed by industry heavyweights Mitsuhiro Yuasa and Hideto Fujino, co-founders of Tokyo-based Rheos Capital Works Inc. (“Rheos”), the investment adviser to the Fund.

The Fund will invest in high performing Japanese institutions - growth companies that illustrate consistent revenue/profit growth and a track record of strong management regardless of size, history, brand or market capitalisation in order to generate alpha by outperforming the TOPIX TR Index (JPY) over the long term.

In the current macro-economic environment of comparatively high US interest rates and a strong US dollar, the Japanese equity market is well positioned for improved earnings expectations and extremely low long-term domestic bond yields.

In order to identify potential growth companies, the team utilises a disciplined bottom-up approach, combined with a macroeconomic view overlay, remaining flexible and dynamic in order to ensure the investment portfolio is positioned so as to take advantage of prevailing and developing market opportunities.

The Fund is a Dublin-domiciled UCITS V product with daily dealing.

Mitsuhiro Yuasa - portfolio managerMitsuhiro Yuasa, portfolio manager, EI Sturdza Strategic Japan Opportunities Fund, says: “We seek to invest in companies which have a clear vision, and have people with the time, energy and emotion required to achieve its objective. We have been searching and investing in such companies in the Japanese markets for the last 14 years and still see a lot of potential growth companies in Japan offering compelling investment opportunities.

“Looking forward, the Abe government is the most stable and strong amongst the major countries now. Based on a strong government, both the private and public sectors are eager to grow financially, backed by policies which the government implemented over the last few years. Japanese companies are making efforts to improve their productivity in order to improve profitability and corporate Japan continues to strive to improve productivity, increase the labour force and capital investment, which will eventually increase GDP. Ultimately, we plan to invest in companies that support such policies and grow to achieve profit over the mid to long term”.

L Georges Gutmans, executive chairman, EI Sturdza Investment Funds, says:

“The launch of the Strategic Japan Opportunities Fund focusing on equity markets in the region further diversifies the depth and breadth of EI Sturdza’s increasingly global offering. Our ability to partner with such a renowned and experienced portfolio management team proves that we can select and attract top performers with a track record of delivering alpha for investors.”

Click here for more information about Mitsuhiro and his investment team.

 

Further news

April 2017

Investing in Growing Companies in Japan's New Economy

Portfolio manager of our new Strategic Japan Opportunities Fund, Mitsuhiro Yuasa, discusses the economic climate in Japan, small and mid cap equity markets in the region as well as the Fund's investment strategy in this Q&A session. To read the full intervew, please click here. The new Fund will invest in high performing Japanese institutions - growth companies that illustrate consistent revenue/profit growth and a track record of strong management regardless...
April 2017

EI Sturdza wins Citywire Switzerland Group Equity Award

EI Sturdza Investment Funds is delighted to build on a recent string of awards by picking up Best Group in the European Equity category at the coveted, Citywire Switzerland Awards 2017. The award recognises the best Fund management firm for equity investments in Europe and follows two Citywire Italy awards in 2016.