Usonian Investments, a Japanese equity manager located in Chicago and Tokyo, has launched the Usonian Japan Value UCITS Fund on Skyline Umbrella Fund ICAV platform, with initial capital of GBP 73.7 million.
Usonian also confirmed that Old Mutual Wealth’s Cirilium portfolios are an anchor investor in the Fund. The distributor for the Fund is J & E Davy, and the European sub-distributor is Aravis Capital.
The Usonian Japan Value strategy seeks to take advantage of the unique inefficiencies in Japan’s equity markets by following a disciplined, bottom-up value approach. It focuses on Japanese equities that are undervalued, profitable, and conservatively capitalised. The investment team invests with a long-term perspective and has ongoing engagement with companies to enhance corporate values and influence outcomes. The strategy seeks to create significant capital appreciation over a full market cycle and outperform the TOPIX Index. Additionally, Usonian focuses on protecting capital in down markets and expects to have lower total volatility compared to the benchmark. While the strategy is market capitalisation agnostic, Usonian finds a greater number of investment opportunities in small to mid-cap companies.
Drew Edwards (pictured), Portfolio Manager and CEO of Usonian, says: “We are excited to launch our first UCITS compliant fund in partnership with J & E Davy, and to have Old Mutual Wealth’s Cirilium portfolios as an anchor investor. We are strong believers in the long-term potential of Japanese equities, which are arguably one of the world’s most undervalued and inefficient asset classes, and this Fund provides access to this market in a regulated and transparent vehicle. Cultural change at the board level of many Japanese companies, in part resulting from the unique initiatives led by the Japanese government in recent years, has resulted in dynamic shifts in corporate governance and investor expectations, and we believe we are well-positioned to capitalise on these developments.”