BDT Invest, the emerging markets and Japanese specialist, has recently become more bullish, having i...
BDT Invest, the emerging markets and Japanese specialist, has recently become more bullish, having increased its equity exposure from 25% to 40% total in the last half of August.
A substantial proportion of that allocation is in Japanese equities. The fund has three times the weighting in Japanese equities it had at the end of June, and this is due partially to stock-specific opportunities, but it is also due to a more positive attitude by the fund managers towards Japan as a whole.
Simon Dobson, who manages the Japanese part of the fund, said: 'I am encouraged by what is going on at the macro level. Specifically, I have been expecting the Bank of Japan to ease monetary policy, which they did. The market has not reacted to that at the moment. But I think the Bank of Japan has made it clear that it is willing to respond more if necessary.'
On a company level, Dobson thinks that change is happening.
'Corporations are firstly taking a much more positive attitude towards delivering returns to their shareholders, corporate governance, that sort of thing.
'This is the first time that I have seen several companies that were really delivering something rather than just mouthing platitudes.'
Meanwhile, the company has been cranking up its marketing efforts, in particular with an updated website.
Richard Hindley, marketing manager for BDT, said: 'There is a lot more information on our website now. Before we had a corporate brochure there. We have now got monthly factsheets and weekly performance charts. So if people want more information they can look there ' it is going to be updated every week.'
At just over $8m, the fund has yet to gather assets in any serious way, as many investors are waiting until the emerging market start to recover before they invest.
Hindley claimed there was a lot of interest generally, but the key potential investors for him are those who are willing to take a more circumspect view on investments and will appreciate the absolute return nature of the fund.
'These are the people we try and target,' he said. 'People who are at the more sophisticated end of the market. Once we hit that magic figure ' $25m or $30m or whatever ' that problem is alleviated. Then the money can come flooding in.'
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