RBC BlueBay Asset Management has launched the BlueBay Investment Grade Japanese Bond fund, building on its existing presence in the Japanese market.
The new long-only yen fund aims to deliver a return of 100 basis points above the Nomura Bond performance index.
It is managed by Mark Dowding, chief investment officer, as well as portfolio manager Neil Mehta, with support from product specialist Wataru Aso.
The strategy invests primarily in Japanese government bonds and domestic corporate credit, aiming to capitalise on an “inflection point” in the market as Japanese pension funds are expected to reallocate back to domestic fixed income.
See also: Japan after the election
Dowding said: “Five years ago, you couldn’t really deliver alpha in Japanese fixed income.
“Now there’s abundant opportunity for those active managers with deep local market expertise who can navigate the expected volatility and dispersion as the Bank of Japan continues to retreat from the market.”
Last week, the Bank of Japan held rates at 0.75% in line with market expectations, with eight of the nine members of the committee voting in favour of this decision.
See also: UK interest rates held in line with market expectations
