|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||59
(as of April 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 March 31, 2018)
Note: Assets denominated in foreign currency are converted at US$1=JPY105
|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 2018
In fiscal year 2017, the Japanese stock market remained stagnant in the first half due to concerns over the global situation, including the heightened geopolitical risks on the Korean Peninsula and the uncertainties over the management of the U.S. administration but began to show assurance around autumn and the Nikkei Stock Average reached 24,000 yen in January 2018. However, towards the fiscal year end, the market was forced to go into a correction as political instability grew in both Japan and the U.S. In fiscal year 2018, as global demand for capital investment in the manufacturing industry continues to be strong, Bayview Asset Management (hereinafter referred to as “BVAM”) anticipates a firm stock market despite some fluctuation due to factors from abroad.
As for the Japanese equity investment management services of BVAM, the New Alphex Long Short Fund, the Highly Selective Japan Mid/Small-cap Equity Fund, and the New Active Plus Fund managed by Koki Okahashi captured the stock picking effect mainly from mid- to small cap stocks, and all three funds achieved extremely favorable performances. The asset balance of the New Alphex Long Short Fund reached its initially set maximum size and was hard-closed (suspension of new funds) at the end of fiscal year 2017.
The performance of the Bayview Japanese Equity Long Short Fund, managed by Takato Tanikawa as the main manager responsible since June 2017, is gradually improving after the change of the fund manager. In fiscal year 2018, the fund manager aims to build up a strong record of accomplishment.
Meanwhile, the U.S. stock market rose significantly and stably led by large-size technology stocks in fiscal year 2017. Despite some phases of temporary decline due to concerns over President Trump’s management of the administration, the market maintained its uphill streak in light of anticipations for economic growth through deregulation and tax reforms. However, since the turn of the year, stock prices went through a major correction with long-term interest rates climbing because of favorable economic indicators. Most recently, speculation is growing that the trade tension will escalate between China and the U.S. pursuing a protectionist policy, and this has been weighing down the market. With midterm elections coming up this fall in the U.S., the effects of political developments on the stock market must be closely watched.
As for BVAM’s investment management services of U.S. equities, investment opportunities are expanding as innovations are emerging in various sectors with the big data revolution, combining cutting-edge information technology with medical services for digital health or with financial services for fintech. In light of such circumstances, the U.S. Bio Venture managed by RS Investments (hereinafter referred to as “RSI”), an investment franchise of Victory Capital Holdings Inc. (hereinafter referred to as “Victory Capital”) and a BVAM partner since its foundation, has maintained strong performance since its launch in February 2017 and was hard-closed at the end of fiscal year 2017. Furthermore, in December 2017, the U.S. Small & Mid Cap Growth Concentrated Fund (Condor) also managed by RSI was newly launched to make selective investments in 20 to 40 small-cap growth companies that represent the next generation, with the goal to gain significant return from investments in innovation.
Moreover, funds based on the smart beta strategy, such as the Japan High Dividend Equity Volatility Weighted Fund managed by CEMP, another Victory Capital investment franchise, have been launched starting in August 2017 with the aim to provide solutions against excessive risk concentration in top holdings, which is a common challenge for traditional capitalization weighted indexes. This strategy covers an extensive variety of investment universe, for example, high-dividend U.S. stocks or Japanese stocks, excluding those of the financial sector, and allows customization to meet the needs of the respective investors. In fiscal year 2018, BVAM plans to offer to Japanese investors the purely AI (artificial intelligence) driven investment strategy that involves absolutely no human judgement and managed by Cerebellum Capital with which BVAM has concluded a business agreement in December 2017, as well as the U.S. Micro-Cap Equity Investment Strategy, which is still quite rare even in the global asset manage industry, managed by yet another Victory Capital investment franchise Integrity.
The investment appetite for shares of unlisted companies (private equities) that have come to play a central role in economic activities mainly in the U.S. is strong around the world. The XII Venture fund (fund of funds) of Horsley Bridge Partners LLC with which BVAM has a long-standing alliance came to a final close in December 2017 receiving significantly larger investments than initially expected from Japanese investors. The VIII Venture fund of Crosslink Capital Inc., another alliance partner, received the largest subscription from the biggest number of strategic investors from Japan ever and successfully concluded its fund raising.
In BVAM’s bond and multi-asset management services, as financial institutions refrain from foreign bond investment in light of the rising interest rates, BVAM has developed an alternative product to bonds that is expected to bring income gain while reducing risks by merging CEMP’s smart beta strategy and BVAM’s quant model-based beta hedge strategy. Furthermore, the asset balance of Cash Management offered as an alternative to current deposits of the Bank of Japan for financial institutions reached 70 billion yen. In fiscal year 2018, BVAM intends to develop a multi-asset product that exercises diversification to evenly balance the risk volume of the respective asset components while also having the function to avoid risks using a new quant model.
BVAM believes that in developing an organization for the next growth phase, it is critical to cultivate young, bright talents starting their careers at BVAM and therefore since fiscal year 2011 started the hiring of new graduates, which is unusual for an independent asset management firm. In fiscal year 2018, one new graduate is joining BVAM, making the number of new graduates hired eleven over the seven years. BVAM is currently in the recruiting process for fiscal year 2019.
Celebrating its 20th anniversary in January 2018, BVAM has grown to become one of Japan’s biggest multi-boutique asset management companies with more than 400 billion yen worth of assets under management and over sixty employees. From fiscal year 2018, BVAM will in earnest launch its digital marketing project to realize direct communication with individual investors, which has been the BVAM’s dream since its foundation. As a transparent investment management company offering services that are of truly high quality, BVAM will take on the challenge to innovate Japan’s asset manage industry.