Managed by Seven Seas, the Fund launched on 8 June and is designed to generate absolute returns with low correlation to major Japanese equity markets, through fundamental research and bottom up portfolio construction. The Fund is available in USD, EUR and JPY share classes on the Nomura UCITS platform.
Nomura and Permal selected Seven Seas because of its recognized stock picking skills, its stable and mature investment team, and the added benefit of the research and analysis it receives from Alpha Japan Asset Advisors, a Tokyo based firm that has a long track record of generating alpha through active stock selection.
Peng Tang, Managing Director of Seven Seas, explained: “We are focusing on the fundamental value of individual Japanese companies, identifying winners and losers as we look to generate alpha, and at the same time reducing the impact of market directionality.
Corporate Japan has some great assets offering ample liquidity with more than 3,700 listed stocks. It accounts for 68 of the world’s 500 largest brands and corporations, and is home to a very dynamic mid- and small-cap segment that contributes to the country’s tradition of technological innovations. What also makes market neutral long/ short such a suitable investment style for the Japanese market is the well-defined short selling and relative value trades opportunities that are readily available to the investor.”
Roberto Giuffrida, Head of Global Sales at Permal, added: “With investors increasingly looking for portfolio diversification, there is strong interest in high quality regional focused funds. Japan is an attractive market for long/short managers and having invested there for many years we know that manager selection and long/short stock picking are the keys to alpha generation in the region. Within UCITS there are currently very few Japanese market neutral funds. The Nomura Permal Alpha Japan Neutral Fund is an exciting investment proposition for those interested in exposure to Japanese companies while limiting country and macro risks, and brings to the UCITS market a top manager with a proven track record.”
Florent Josset, Global Head of Nomura Alternative Investments Group, said: “The launch of this new fund marks another important development in the ongoing build out of Nomura’s the strong investment thesis of this strategy made it natural to launch a Japan-focused UCITS-compliant fund. Combining our expertise with Permal’s track record around manager selection, monitoring and recognition in the hedge fund space, together forms a very strong investment and distribution partnership.”
The Fund’s UCITS format provides investors with the benefits of strict risk management including pre-trade and post-trade monitoring, transparency and weekly liquidity.