JapanJun 26 2018

Sumi Trust launches Japanese equities funds

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Sumi Trust launches Japanese equities funds

Sumitomo Mitsui Trust has launched new Japanese equities funds.

The Ucits funds include the Sakigake High Alpha - Japan Thematic Growth and the FGS - Japan Strategic Growth.

Yukihiro Murota, managing director of Sumitomo Mitsui Trust International, said: "Quality Japanese companies that are able to generate consistent and mid to long-term growth have increasingly become a sought-after investment for global institutional clients, attracted by the strong performance of Japanese equities.

"Our new funds are a direct response to this burgeoning demand, which is set to continue as the country undergoes further economic, social and industrial changes."

The minimum investment is JPY 1,000,000 or USD 10,000  (£7,553) for the two new funds.

Performance will be benchmarked against Topix.

The funds offer JPY as well as USD hedged and EUR hedged share classes, and have an initial capital of USD 20m (£15m) each.

Scott Gallacher, chartered financial planner at Rowley Turton, said: "Despite being the second largest stock market, in my experience UK investors have typically shied away from Japan. This is perhaps due to having been burnt in the past.

"However, domestic funds with this kind of track record will merit consideration for those wanting exposure to this market."