Asset Value Investors Launches UCITS Version of Japan Opportunity Trust

Asset Value Investors has introduced an open-ended version of its successful £200 million Japan Opportunity trust, now available as the AVI Japanese Special Situations fund. This new fund, structured as a Dublin UCITS, continues the firm's focus on Japanese small-cap equities and employs a bottom-up, research-driven approach to engage with companies.

Led by CEO and CIO Joe Bauernfreund, who also manages the original Japan Opportunity trust launched in 2018, the strategy will benefit from the expertise of a dedicated Japan research team consisting of six members. The fund aims to outperform the MSCI Japan Small Cap index and will typically invest in 25-35 companies, with an annual management fee of 1%.

Bauernfreund expressed optimism about the macroeconomic environment in Japan, citing factors such as the weak yen, which enhances cost-competitiveness in tourism and manufacturing, and the return of inflation after four decades. He anticipates potential improvements in capital allocation, productivity, and spending, which could benefit the portfolio companies.

The AVI Japan Opportunity trust has delivered strong returns over the past five years, outperforming the AIC Japanese Smaller Companies sector. This success, coupled with investor demand, prompted the launch of the UCITS version. Additionally, AVI recently introduced a UCITS version of its £1.3 billion AVI Global trust, further expanding its offerings under the management of Bauernfreund.