Asset Management One Co., a subsidiary of Mizuho Financial Group Inc., is set to introduce a new active fund that will concentrate on large-cap stocks in Japan. The fund has a target of accumulating 500 billion yen ($3.4 billion) within the next five to ten years. In a recent interview, Noriyuki Sugihara, president of Asset Management One Co., mentioned that the fund intends to invest in approximately 50 prominent large-cap shares.
He expressed optimism about a favorable environment that is developing for asset growth through medium to long-term investments in Japanese equities. The Japanese government is encouraging the populace to transition more of their savings into investment options, aimed at enhancing the financial assets of one of the oldest demographics globally.
As of the end of June, the total net asset value of publicly offered investment trusts in Japan reached an unprecedented level, spurred by a robust stock market and the growing popularity of new tax-exempt investment accounts known as NISA. However, these funds have predominantly centered on foreign equity investment trusts.
Interest in products focusing on Japanese shares has been relatively low.
Launch of Japanese large-cap equity fund
Sugihara pointed out that there are currently very few equity funds in Japan that concentrate specifically on large-cap stocks.
The firm intends to commence management of the fund using its own capital, seeking investors only after establishing a solid investment track record. Asset Management One Co.
As of the end of July, the firm oversees assets totaling over 69 trillion yen ($470 billion). Additionally, they have initiated a crossover fund that caters to both publicly traded and non-publicly traded companies, supporting them from the initial unlisted phase right through to the post-IPO stage. These strategic initiatives reflect Asset Management One Co.’s confidence in maintaining a strong upward trend in Japanese equities.
Equities have mostly rebounded from the substantial losses sustained in August. Sugihara attributed the steep decline to corrections made by short-term momentum traders and affirmed that the market’s underlying strength remains intact.
