Japanese asset manager Sumitomo Mitsui Trust Asset Management has seeded a Japan Value Focus Ucits fund with ¥ 1bn of internal capital, targeting institutional investors in the UK and Europe.
SuMi Trust AM, a core asset manager within Sumitomo Mitsui Trust Group, said the fund provides access to a Japanese value strategy that has outperformed the Topix (Tokyo Stock Exchange’s primary benchmark) Total Return benchmark since its inception in 2016.
The Ucits and underlying strategy are led by Zhangwenzheng Jing, who was appointed chief portfolio manager for the Japan Value Strategy in September 2024.
The Japan Value Focus strategy targets undervalued companies where there is potential for re-rating, such as through structural reforms, improved shareholder returns or overlooked competitive strengths.
The fund is aimed at institutional investors, including family offices, wealth managers, multi-managers and pension funds, as SuMi Trust looks to expand distribution of its Japanese equity capabilities internationally.
Reforms continue to deliver value in Japan
Zhangwenzheng Jing, chief portfolio manager of the Japan Value Focus Strategy, said: “Japan’s shift away from deflation, continued corporate governance reforms and improving capital discipline have created tailwinds for value. Our process looks for mispriced cash‑flow strength plus a tangible catalyst. As the largest asset manager in Japan, we have better access to the senior management of Japanese companies, enabling us to conduct in-depth research and dialogue with them. Bringing this approach into a Ucits fund makes it easier for European investors to access the opportunity within a familiar structure.”
