After more than 50 years in asset management, Hideo Shiozumi (pictured) is to step down from the day-to-day running of his eponymous firm on 23 September, ahead of retiring next year at 79 years old.
Shiozumi Asset Management was set up in London in 2001, with its founder harnessing his then-30 years of experience of investing in Japanese equities. Educated in the US, he brought a western perspective to investing in his native Japan.
He started his career in 1970 and set up his first venture in 1983, Shiozumi & Company, to manage the Japanese investments of George Soros’ Quantum fund.
Through Shiozumi Asset Management he forged a partnership with Legg Mason to run its Japan Equity fund, which was carried over to Martin Currie after Legg Mason was acquired by Franklin Templeton in February 2020.
Now known as FTF Martin Currie Japan Equity, management of the £569m fund will be taken in-house, with effect from 23 September. Templeton Asset Management will assist as co-manager.
Since launching the fund in 1996, Shiozumi has returned 528.2%, well over six times higher than the TSE Topix index’s 83.3% return.
However, his preference for high growth smaller companies and concentrated portfolio has meant the fund is more volatile than peers in the short term. Over one year, the fund is down 33% compared to the average IA Japan fund’s losses of 9.6%. Over three years, those figures are -12.1% and +8.2%, respectively.
Shiozumi was among 52 managers culled from FE’s Alpha List in February, alongside Lindsell Train co-founder Michael Lindsell, Jupiter Financial Opportunities manager Guy de Blonay and Ardevora’s Jeremy Lang.
Changing of the guard
FTF Martin Currie Japan Equity’s portfolio management team will include Singapore-based Paul Danes. He will work closely alongside Reiko Mito, who is joining from Gam Investments on 25 August as head of Japan equity strategy and research.
Danes and Mito will work closely with Shiozumi during the transition period to ensure continuity and preserve the investment style and philosophy of the fund.
Danes is described as “a long-tenured and well-established investment professional” at Martin Currie and Templeton AM. He has over 18 years of prior experience in Japanese research and portfolios, and is fluent in Japanese.
Mito, a Japanese national based in Switzerland, will form part of Martin Currie’s newly-created Japan equity team, working out of its Zurich office. She will report to Michael Browne, global head of investment strategy and oversight.
At Gam Investments she was investment director and co-manager of the Japan Equity and Gam Star Japan Leaders funds. She joined the firm in November 2011 after working as a senior equity analyst at Atlantic Investment Management in Tokyo for five years.
Mito started her career at the Bank of Japan in 1996, later moving to Goldman Sachs Asset Management where she was an analyst and portfolio manager.
Browne commented: “We are delighted to have a dedicated in-house Japan equity capability and we are excited that, in Reiko, we have appointed a strong and experienced leader who will help us build our offering in this space. She brings extensive and robust experience to the firm, with 16 years of specialist investment experience in Japanese equities.
“Her appointment demonstrates our commitment to investing in new talent to support our long-standing ambition in this space, and I look forward to working with the new Japan equity team.”
See also: Martin Currie adds ex-Rathbones manager on £1bn of UK equity funds
