BNY Mellon launches two Japan equity funds

BNY Mellon has launched two Japanese equity funds in a bid to bring its Tokyo-based subsidiary to a wider audience.

The Japan All Cap Equity fund and the Japan Small Cap Equity Focus fund are run by a local team led by Miyuki Kashima, head of Japanese equity investment at BNY Mellon Asset Management Japan.

The funds were launched in December and are domiciled in Dublin, with share classes available at an annual management charge of 1 per cent.

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Ms Kashima said she had “never felt this positive for the long term” during her near-30-year career running Japanese equities. She argued that even given last year’s equity rally, which saw the Topix index gain more than 50 per cent in local currency terms, the market was a long way off its peak.

“The market hasn’t caught up to the earnings recovery since the financial crisis,” Ms Kashima said.

“The potential upside, including this year’s and next year’s earnings growth, is 40 per cent. We will start to see the market discount next year’s earnings growth as well as catch up with previous growth.”

The BNY Mellon Japan All Cap Equity fund is run by Masafumi Oshiden, while the more concentrated BNY Mellon Japan Small Cap Equity Focus fund is run by Kazuya Kurosawa. Both products are mirror versions of successful strategies already available to Japanese investors.

The Japanese equity team in charge of the funds was brought into BNY Mellon last year from ING.