Barings has launched a geared Japanese long/short fund to be managed by the head of the Japan equity...
Barings has launched a geared Japanese long/short fund to be managed by the head of the Japan equity team Joji Maki.
The Baring Japan Absolute Return fund will generally have a long bias, holding up to 50 stocks and selling short up to 30, with an overall net exposure of between 20% and 80%
The long stocks will be selected on a bottom-up basis but with sector and macro themes incorporated in stock selection. It is likely to have a bias towards small and mid- cap companies.
The short strategy looks at stocks that are vulnerable to earnings disappointment or where sentiment is more buoyant than justified. Maki feels this will mainly be found in the large cap arena. The fund will short index futures when the manager is uncertain about market direction or is negative on the market direction.
The minimum investment is $250,000 or equivalent in euro and yen. A performance fee of 20% of any appreciation in the NAV is charged. There is also an initial charge of up to 3% and a redemption charge of up to 3%.
The fund launch is part of Barings' strategy to grow its absolute return business internationally. The company was recently acquired by US-based MassMutual which is keen for the group to increase its cross-border distribution.
Robert O'Connell, chairman of MassMutual, said: "Clearly, the Barings acquisition is a significant step in our international growth strategy. Its highly recognised franchise and global asset management capabilities will provide a springboard for the worldwide distribution of our company's financial products and services, beyond our current global capabilities.
"We continue to grow our business both in the US and internationally, and will take full advantage of the opportunities for cross-selling products and services from our combined companies' diversified portfolio. We intend to maximise the use of the highly recognisable Barings name, particularly in Europe."
Barings operates 11 offices in 10 countries including London, Hong Kong, Tokyo and the US. MassMutual and its subsidiaries currently have offices in 12 countries on four continents, serving 11 million clients. The move will also provide cross-selling opportunities across MassMutual's other major lines of business.
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