Asset Value Investors will introduce two new open-ended UCITS funds, which will match its existing global and Japanese equity strategies.
The funds will represent the open-ended option for the existing close-ended trusts. Currently, the AVI Global trust holds £1.1bn assets under management, while the Japan Opportunity trust, launched just in 2018, holds £180m.
The new open-ended UCITS funds will be overseen by CEO Joe Bauernfreund.
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“We believe the baton is being passed firmly back to stockpickers. It is an opportunity rich environment and one where engagement and a focus on investments with explicit catalysts will be key levers to drive absolute and relative returns,” Bauernfreund said.
“Discounts haven’t been this attractive since 2008. In recent years we have invested heavily in our business. The investment team has been expanded, and talent has been developed and nurtured. We have developed “The Hub”, a proprietary analytical system to house AVI’s research data, to support our engagement strategy.”
The Global trust holds its largest exposures in Europe and North America, making up 34% and 28% of the holdings respectively. The Japan Opportunity trust includes top holdings in materials and capital goods and has an annualised return of 3.7% as of the end of October.
Gary Tuffield, partner and head of distribution at Goodhart Partners, said: “AVI has all the characteristics that we look for when partnering with a specialist boutique asset manager: independence, strong alignment of interests, a stable shareholder base, and a structural investment edge.
“AVI’s fundamental investment approach lends itself to the multi-decade reform agenda that is unfolding in Japan. We are pleased to see investor demand for these daily priced UCITS funds.”
