BNY Mellon aims to capitalise on Japan's economic growth with the launch of two dedicated funds.

BNY Mellon, the US asset management giant, has launched two funds that aim to capitalise on Japan's growth story, part of a move by other firms in the same vein. (See here, for example.)

The Japan Small Cap Equity Focus fund and the Japan All Cap Equity Fund will be managed by a five-member dedicated equity team, led by Miyuki Kashima, the head of Japanese equity investment at BNY Mellon AM Japan. 

The All Cap fund, which has a minimum of 50 stocks with annual turnover of 30 to 50 per cent, is run by Masafumi Oshiden, while the Small Cap fund, which holds 20 to 30 stocks of less than ¥500 billion ($4.9 billion) with an annual turnover of 30 to 60 per cent, is run by Kazuya Kurosawa.

The funds can invest in real estate investment trusts, money market funds and equity index futures, and invest as much as 10 per cent of their net assets in freshly-issued company shares not listed or traded on recognised exchanges in the past year. 

Japanese Prime Minister Shinzo Abe launched the "Three Arrows" programme at the end of 2012 to revive the dwindling economy, referring to fiscal stimulus, monetary easing and structural reforms.