|Name||Bayview Asset Management Co., Ltd.|
|Location||Bancho House, 29-1 Ichibancho Chiyoda-ku,
Tokyo 102-0082, JAPAN
Tel: +813-5210-3341 Fax: +813-5210-3385
|Established||January 7, 1998|
|Business||Investment Management Business (Investment Trust Management and Discretionary Investment Management)
Investment Advisory and Agency Business
The Second Financial Instruments Business
|Financial Instruments Firm Registration Number||Kanto Local Finance Bureau Director-General (FIF) No. 397
Securities and Exchange Surveillance Commission
|Membership||The Investment Trusts Association, Japan
Japan Investment Advisers Association
|Number of Officers and Employees||58
(as of January 1, 2018)
Chief Executive Officer
|Board of Directors||Naotaka Murasumi
|Executive Officers||Hiroaki Iwata|
|Legal Counsel||Anderson, Mori & Tomotsune Law Office|
|Shareholder||Bayview Holdings Co., Ltd.
(a holding company owned by officers and employees of Bayview Asset Management Co., Ltd.)
|Asset Under Contract||Around JPY 400.0 billion
(as of December 31, 2017)
Note: Assets denominated in foreign currency are converted at US$1=JPY112
|Assessment on Internal Control||SOC (Service Organization Control) Reporting No. 86* obtained from an independent external auditor (from FY2012)
* SOC (Service Organization Control) Reporting based on Practical Guidance of Audit and Assurance Implementation Committee No.86 (The Japanese Institute of Certified Public Accountants)
|Financial Audit||Financial statement audit report obtained from an independent external auditor(from FY2010)|
|January 1998||Established as a 100% subsidiary of RS Investments, a U.S. equity boutique investment firm that had started as an asset management arm of Robertson Stephens & Company based in San Francisco, to provide U.S. focused investment advice to Japan's institutional clients|
|February 1998||Registered as an Investment Advisory Company at Kanto Local Finance Bureau, started providing active investment management services of U.S. equity|
|July 1999||Formed the exclusive business alliance in Japan with Crosslink Capital, Inc.(founded in 1989 as a venture capital arm of RSIM), a venture capital, based in San Francisco|
|December 1999||Licensed as a Discretionary Investment Management Company by the Financial Reconstruction Committee, and entered into the pension fund management business|
|December 2000||Formed the exclusive business alliance in Japan with Horsley Bridge Partners LLC, a private equity firm, based in San Francisco|
|September 2001||Approved to manage currencies to meet the need to hedge currency risks accompanied by foreign currency denominated assets|
|April 2002||Acquired the majority equity ownership (90%) of the company from RS Investments through a management buyout|
|June 2002||Licensed as an Investment Trust Management Company by the Prime Minister of Japan|
|July 2002||Launched a Japanese equity hedge fund based on fundamentals bottom-up research|
|June 2003||Ken Yagi was appointed to serve on the Board of Directors of Japan Investment Advisers Association (until 2010, reappointed in 2012 and 2015)|
|January 2007||Changed its company name from RS Asset Management Japan Co., Ltd. to Bayview Asset Management Co., Ltd.|
|January 2008||The 10th anniversary|
|April 2008||Formed the Board of Executive Officers, that acts as decision-making committee for business execution|
|April 2011||Commenced recruiting university new graduates since company was established|
|March 2013||Obtained the SOC (Service Organization Control) Reporting No. 86 from an external independent auditor on the control of discretionary investment management business|
|July 2013||Launched its first public investment trust for retail investors|
|December 2013||Started managing a proprietary multi-asset strategy. Launched AAA series fund (Active Asset Allocation Fund) based on quantitative modeling approach.|
|August 2014||Bayview Asset Management formed exclusive alliance in Japan with venture capital, ZenShin Capital Management LLC (current GoAhead Ventures LLC), based in San Francisco|
|July 2016||Formed an exclusive business alliance in Japan with Victory Capital Management Inc., a multi-boutique asset management firm, based in Cleveland|
|December 2017||Formed an exclusive business alliance in Japan with Cerebellum Capital, LLC, based in Silicon Valley|
|January 2018||The 20th anniversary|
Vision for 2017
The Japanese stock market showed a steep rise in the fiscal year 2016. In the first half of the fiscal year, stock prices grew at a sluggish pace because of concerns over the economy, such as low personal consumption and the slowdown in exports caused by the strong yen. However, as signs appeared around autumn that the global economy bottomed out and interest rose, the Nikkei Stock Average recovered to the 19,000 mark at the end of December from prices that dipped below the 15,000 mark at one time, under the shadow of the favorable investor sentiment in anticipation of the future economic policies of Mr. Donald Trump, elected president of the United States, finally to lead the market into the stratosphere toward the end of the fiscal year.
Bayview Asset Management Co., Ltd., (hereinafter referred to as “BVAM”) will review BVAM’s management frameworks drastically for improvement of performance in the fiscal year 2017. This is because the performance of the Bayview Japanese Equities Long Short and Active Plus managed by the team led by Yasuro Sakuma were not favorable in the fiscal year 2016, under the circumstances of the continued market driven by demand and supply where major equities and other fundamentals were not reflected, as the impact of macro factors on the equity market became larger in the services for Japanese equity investment management services.
In the meantime, the New Alphex Long Short and Highly Selective Japan Mid/Small-Cap Equity managed by the team led by Koki Okahashi achieved one of the best performances in the investment market as the flexible equity exposure control worked effectively and the stock selection of mid/small-cap equities had a steady and beneficial effect on investment management. The asset balance of the Highly Selective Japan Mid/Small-cap Equity reached initially set maximum size and closed (suspension of subscriptions) as of the end of the fiscal year 2016. In the fiscal year 2017, BVAM plans to launch a new fund for investments mainly in mid/small-cap equities.
The U.S. equity market also showed a steep rise in the fiscal year 2016. Although stock prices declined temporarily due to risk aversion by investors amid a sense of uncertainty because of Brexit and the U.S. presidential election, the market turned bullish tone under the circumstances where the U.S. economy and corporate performance improved. Particularly, stock prices soared into the stratosphere because economic growth was expected to accelerate from a reduction in taxes, easing of regulations, and an increase in investments in infrastructures, which are pledges from Trump’s presidential election campaign.
As for BVAM’s investment management services of U.S. equities, innovations are activated in the IoT (Internet of Things), AI (Artificial Intelligence), digital health, and other various areas, which make the investment circumstances favorable for U.S. mid/small-cap equity funds managed by RS Investments (hereinafter referred to as “RSI”) which joined in an alliance with us when BVAM was founded. For example, the bio-revolution has made progress on the back of a dramatic advantage of gene decoding technology in the field of biochemical, and the curative medicines for cancers and other intractable diseases are being developed at an accelerated pace. In February 2017, BVAM launched the publicly offered investment trust, U.S. Bio Ventures (limited open type), to be managed by RSI and to provide investors investment opportunities in mid/small-cap bio companies that develop prominent new medicines.
Under the continuing circumstances of low interest rates, global investors are eager to invest in private equities that have the potential to secure high returns in the mid to long term. A growth buyout fund of funds managed by Horsley Bridge Partners, which closed at the end of 2016, attracted significant commitments from Japanese investors. In addition, Crosslink Ventures VIII to be launched by the end of 2017 by Crosslink Partners, with which BVAM formed an alliance for many years, receives strong inquiries from investors.
In BVAM’s bond and multi-asset management services, in October 2016, BVAM launched the private investment trust U.S. Government Agency Guaranteed Short-Term Bond Fund to be managed by the mortgage security team of INCORE, one of the affiliate bond investment specialized boutiques of Victory Capital Management (hereinafter referred to as “Victory), as the first joint project with Victory with whom BVAM had concluded an exclusive contract on the operations in Japan in August 2016. The U.S. mutual fund, as the basis of this fund, boasts high performances ranked at the top level in the U.S. market for a long time, and BVAM expects stable earnings from the period of rising interest. Therefore, the fund draws considerable attention from financial institutions, and the asset balance exceeded 20 billion yen in a few months after the establishment.
In BVAM’s own asset management, BVAM launched the private investment trust European Government Bond Long Short Fund in July 2016 as an alternative to domestic bond investment, which became less appealing. Subsequently, BVAM launched the private investment trust Cash Management Fund as an alternative to current deposits of the BOJ for financial institutions in October. Hence, the total balance of BVAM’s assets exceeded 100 billion yen as of the end of the fiscal year 2016. Name of the Investment Management Service Department in charge of managing BVAM’s own assets was changed to the Global Investment Management Department at the beginning of the fiscal year 2017. The department strives to develop products using the BVAM’s own quantitative model approach by investing in various domestic and foreign assets extensively. BVAM took a vital step as Japan’s first full-fledged multi-boutique asset management company that provides a superior product lineup from BVAM’s own and U.S. specialized boutique companies with which BVAM forms partnerships based on BVAM’s unique platform of providing high-quality client services. In the fiscal year 2017, BVAM plans to propose attractive investment strategies to investors, represented by the U.S. convertible bond strategy, as well as by the strategic beta strategy by the affiliate specialized boutique of Victory.
BVAM started hiring new graduates since the fiscal year 2011, which is an unusual personnel strategy as an independent asset management company, based on the idea that it is essential for BVAM’s growth to discover and foster highly capable young human resources to become leaders of the next generation. The new graduates hired as the first generation participate actively in BVAM’s business as analysts of BVAM’s Japanese equity investment management department and as the very valuable workforce of BVAM. In the fiscal year 2017, two new graduates joined us, and BVAM is now in the recruiting process for the fiscal year 2018.
In the asset management market, fiduciary duty has been growing in importance. Since BVAM’s foundation in January 1998, BVAM has endeavored to provide products and services for investors under the client-oriented business policy as an independent asset management BVAM. In the fiscal year 2017, BVAM will continue to make a concerted effort to fulfill the requirements of investors as an asset management company that is visible and truly capable of providing high-quality services.