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Ben Kumar sells passive Japan funds
Seven Investment Management multi-manager Ben Kumar has sold out of two passive Japan funds after creating his own basket of stocks.
Mr Kumar, who works alongside Justin Urquhart Stewart and Alex Scott, said he has sold the positions in the Vanguard MSCI Japan and Amundi MSCI Pacific funds across the AAP fund of passive fund range and reduced cost even further by putting stocks together himself.
He said: “The basket replicates the Topix through the use of an optimiser so we don’t end up buying the whole thing all at once.”
Mr Kumar said the aim is to reduce cost to their clients adding the strategy has been used in various parts of the market by the team before, including with UK and US equities, UK bonds and infrastructure.
He said: “I wouldn’t be surprised if we stopped there though, because you need very liquid markets.
“Doing something in the far east or in emerging markets is probaby not going to be feasible and it would be better to pay someone else to take the liquidity risk.”
Elsewhere, the range, which consists of four fund of passive funds, has passed the £1bn assets under management mark.
Mr Kumar said: “We think this is a pretty significant milestone and considering the funds have only been going for three-and-a-half years, we think it’s strong.”
