The fund invests primarily in high dividend Japanese equities and Japanese REITs advised by Mizuho (70% of the fund’s invested assets), as well as call options managed by BlackRock.
The fund also offers multiple currency hedged and un-hedged share classes in order for investors to manage currency risk.
The fund will be led by Hiroki Takayama and Kyle McClements, BlackRock told Fund Selector Asia. Takayama is the portfolio manager at BlackRock’s Japanese fundamental equity team, while Kyle McClements heads BlackRock’s equity option overlay team. There is a total of six members at BlackRock on the fund’s team, Blackrock disclosed.
Julia Lee, BlackRock’s head of Hong Kong retail business said the fund was aimed investors interested in long-term capital growth and income in Japan.
BlackRock has an overweight position on Japan equities. However, other asset managers have a mixed picture of Japan. Sonja Laud, head of multi-asset income at Baring AM, said the economy is worrisome but corporate earnings potential is strong.
The top five performing Japan equity funds: