Baring Asset Management (BAM) is seeking returns of 15 per cent per annum for its new Baring Japan Absolute Return Fund, which launched on 1 July.
The fund, which is available to sophisticated international investors, will have an absolute return focus and aims to take advantage of the continuing structural recovery in Japan and the opportunities that this will present
The new long/short hedge fund has a minimum investment of EUR 200,000, USD 250,000 or YEN 25,000,000.
Managed by BAM's Investment team in Tokyo, led by Joji Maki, the new fund will build on the considerable long and short investment experience of the team. The three managers, Maki-san, Atsushi Yamazaki and Toru Ibayashi, will follow an innovative investment style, favouring stocks with "neglected alpha" - frequently small and mid cap stocks which are under researched.
"Now is the time to invest in Japan," said Joji Maki, Baring Asset Management's Head of Japanese Equities. "We believe that Japan has not fulfilled its potential in the last year and that there are considerable opportunities for investors on the ground. We have a 29-year track record of researching and managing Japanese companies. This fund gives us the ability to generate additional alpha and protect capital by shorting stocks and indices when we think the time is right."
Ian Pascal, Marketing Director at Baring Asset Management added: "This fund leverages our considerable expertise in Asia and our excellent long only track record in Japan. It offers investors an alternative way to participate in the recovering Japanese economy and generate positive returns. The fund aims to capture substantial upside in a rising equity market and preserve capital in a falling market while continuing to deliver positive returns.
"Japan is currently one of the most attractive investment opportunities in the world. Successful investment there requires in-depth knowledge and a professional presence in the region. This fund will appeal to investors who want to invest in Japan but who may have concerns about the Japanese economy and wish to reduce their downside risk."
The Japan Absolute Return Fund will charge an annual management fee of 1.5 per cent and a performance fee of 20 per cent% (with a high water mark).
Baring Asset Management has an excellent track record in Japan. The Baring Japan Growth Trust has been running for 19 years and is managed by Joji Maki. The Baring Japan Growth Trust is ranked in the second quartile over 1 year and 6 months, and top quartile over 3 and 5 years. (source: Standard & Poors 24/06/05)