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Daiwa SB Investments expands
14 February 2014
Fund manager targets Asia, Middle East and South America. Hardeep Dhillon reports
Daiwa SB Investments
Daiwa SB Investments (DSBI), which launched its first
Luxembourg domiciled Sicav, the Japan Equity Fundamental Active
Fund, in November 2013, aims to target new markets for the
Following cross-border approval for the fund for the UK,
Germany and Austria just last month, Daiwa is now looking at
applying for approvals in Asia, the Middle East and certain
countries in South America. This follows a strong launch for
the fund, according to Trevor Langford, director and
London-based head of marketing at DSBI.
"We have enjoyed a strong launch for the fund and already have
close to $30m in assets under management (AuM)," he says.
"Importantly, we have a strong mix of clients who have invested
in the fund to date, including pension funds, asset managers
and insurance firms from across the UK, Belgium, Luxembourg and
"Additionally, in January we received cross-border approval for
the UK, Germany and Austria and we will now be applying for
approvals in Asia, the Middle East and South America. There is
a lot of interest in the fund and we expect this to
Interest in Japanese equities remains strong and Daiwa will be
looking to capitalise on this throughout 2014, he adds.
DSBI's fund is designed to generate stable excess returns
versus the Tokyo Stock Price Index, founded on intensive
fundamental research and utilising DSBI's proprietary valuation
and earnings momentum growth tools.
An unconstrained investment style gives freedom to the
portfolio manager to invest in both growth and value stocks,
according to the firm. Investors can choose between different
share classes including sterling, US dollar and euro, which are
all hedged, and a Japanese yen base currency.
The launch has allowed DSBI to expand its client base from its
London office. Due to the pooled fund nature of the Sicav,
smaller firms are now be able to invest, Langford notes,
including family offices, hedge funds, private banks, fund of
funds, as well as smaller pension funds and other asset
Previously DSBI's segregated funds were only open to those able
to invest a minimum of $50m. Typically this meant that DSBI was
only dealing with institutions with at least $1bn in AuM.