A Japanese equity fund, which is based on engaging with small and mid-cap Japanese companies has raised $424 million in assets under management in three and a half years since its launch in March 2012.
The TMAM-Go Japan Engagement Fund is backed by Japanese manager Tokio Marine Asset Management and 45% of its assets are held by Japanese institutional investors. The fund aims to engage with high quality companies that require strategic, financial and governance improvements to boost their valuation. Since its launch the fund has produced average annual returns of 30%, outperforming the small and mid-cap index (19% a year) and the wider market (17% a year). GO Investment Partners’ Steve Brown, chairman of the funds investment council, commented: “Investors realise we are helping companies to improve long-term performance by encouraging investment in their excellent core businesses and not just agitating for a return of cash to shareholders, which only provides a one-off benefit. We will continue to grow assets under management prudently, anticipating capacity at around US$1 billion.”