BDT Investment Management has reopened the BDT Invest Japanese smaller companies fund, a Dublin-domiciled Oeic that it established in February.
The fund was closed on the same day it opened because BDT wanted to construct the target portfolio without having to make adjustments for inflows of new money. It aims for growth by investing in a portfolio of Japanese smaller companies.
New dynamic companies that are exploiting niche markets and seem set to grow rapidly will be sought for the portfolio. These companies will also have a competitive advantage which sets them apart from market rivals.
The fund manager, Tokyo-based Masato Kawada, joined BDT in 2003 from Invesco GT, where he spent 19 years. During his time at Invesco GT, Kawada worked with BDT's Simon Dobson and Andrew Callendar.
When selecting stocks Kawada will refer to a number of themes. Domestic growth covers themes such as internet diffusion, discount retailing and corporate outsourcing. Global growth, which is a relatively small part of the portfolio, includes auto parts and machinery.
Kawada will ensure visits are made to companies with investment potential and those already contained in the portfolio, enabling business strategies to be discussed and compared with that of market rivals.
The prospects for Japan appear brighter than for over a decade and as a result of increasing confidence, many companies have upwardly revised their profit targets. Smaller companies tend to soak up domestic influences more rapidly than larger companies, so the outlook appears good. However, smaller companies tend to react quickly to bad news and if profit targets are missed, prices will fall sharply.
According to Standard & Poor's, the BDT Invest Japanese smaller companies fund is ranked fifth out of 34 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three months to July 12, 2004.