About Bayview Asset Management

Corporate Information

Corporate Overview

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
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Established January 7, 1998
Capital JPY 100,000,000
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)
President and
Chief Executive Officer
Ken Yagi
Board of Directors Naotaka Murasumi
Yuji Kudo
Rieko Shimojo
Executive Officers Hiroaki Iwata
Auditors Tsuneo Suzuki
Nobuaki Tomaru
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)

Organization

Organization Chart

Corporate Management Team

(Ken Yagi)

President and Chief Executive Officer
Ken Yagi

(Naotaka Murasumi)

Director
Naotaka Murasumi

(Yuji Kudo)

Director
Yuji Kudo

(Rieko Shimojo)

Director
Rieko Shimojo

(Hiroaki Iwata)

Chief Financial Officer
Hiroaki Iwata

(Tsuneo Suzuki)

Auditor
Tsuneo Suzuki

(Nobuaki Tomaru)

Auditor
Nobuaki Tomaru

(写真)

Board of Directors:
Decision-making committee for corporate management,which also supervises business execution
Ken Yagi, Naotaka Murasumi, Yuji Kudo, Rieko Shimojo, Tsuneo Suzuki, Nobuaki Tomaru

(写真)

Board of Executive Officers:
Decision-making committee for business execution
Ken Yagi, Rieko Shimojo, Hiroaki Iwata

Company History

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 Victory Solutions, a Victory Capital solutions platform, 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 Victory Solutions’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.

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President and Chief Executive Officer
Ken Yagi

Ken Yagi established Bayview Asset Management Co., Ltd. (BVAM) in January 1998. In April 2002, Ken, together with the management team, acquired the majority share (90%) of BVAM from RS Investments through management buyout, and then in March 2007, bought back the remaining 10% to accomplish a full independence. Ken joined RS Investments in June 1997 as Principal and became Managing Director in December 1997. Prior to joining RS Investments, Ken was Vice President of the New Products Dept. at Nomura Securities Co., Ltd. While at Nomura for over 13 years, he gained experience in all areas of investment banking and investment management, including retail sales, institutional sales & marketing, product origination, and corporate finance. Ken graduated from the Wharton School of the University of Pennsylvania with an M.B.A., majoring in both finance and entrepreneurial management in 1989. He received a B.A. in commerce from Hitotsubashi University in Tokyo in 1984. Ken served on the Board of Directors of the Japan Investment Advisers Association in 2003.

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Director
Naotaka Murasumi

Naotaka Murasumi became Advisor to Bayview Asset Management Co., Ltd. (BVAM) first in 2005 and then was reappointed in October 2012. He has been appointed director since June 2014. Naotaka started his career at Nomura Securities Co., Ltd. in 1963. After serving as general manager of the Paymaster’s Office, general manager of the Overseas General Services Department, head of the System Development Office, general manager of the Human Resources and Training/Staff Department, head of the Legal/Management and Comprehensive Planning Office, and the general manager of the System Planning Department, he was promoted to director in 1986, senior corporate managing director in 1988, executive vice president in 1990 and deputy president (representative director) in 1993. Since 1999, he has served as chairman and representative director of Japan Future Information Technology & Systems Co.,Ltd. Director of CSK Corp.(current SCSK Corp.) and director of Hitachi Transport System. Ltd. After becoming advisor to BVAM, he also served as director of SPARX Group Co.,Ltd. and director of Hitachi Plant Technologies Ltd. (current Hitachi, Ltd.) Naotaka received a B.A. in economics from Hokkaido University in 1963.

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Director
Yuji Kudo

Yuji Kudo joined Bayview Asset Management Co., Ltd. (BVAM) as director in June 2014. He started his career in 1967 when he joined Nikko securities Co., Ltd. After receiving training in London and Hong Kong, he became engaged in asset management operations, joining the Foreign Investment Advisory Office of Nikko Research Center Ltd. in July 1973 and being seconded to an American Japan fund (specializing in investment in Japan) from 1976. Yuji became president and representative director of Schroder Investment Management (Japan) Ltd. in 1985. Since 2004, he was also the representative of y2e Consulting and advisor to Gartmore Asset Management Ltd.(Current Janus Henderson Investors (Japan) Limited) He also serves as a committee member on the Japan Investment Advisers Association Discipline Committee, a director of the International Management Association and part-time lecturer at the universities of Waseda, Kobe and Osaka. Yuji received a L.L.B. in law from Tohoku University in 1967.

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Director
Rieko Shimojo

Rieko Shimojo joined Bayview Asset Management Co., Ltd. (BVAM) as Manager of Investment Management Services Division in April 2002, and was promoted to General Manager of the division in April 2004. She, then, launched International Business Development Division in April 2006, and was appointed as Executive Officer in April 2009.She was appointed as director in October 2014. Prior to joining BVAM, Rieko had worked in the Investment Trust & Financial Product Marketing Dept at Schroder Investment Banking(current Credit Suisse Securities (Japan) Ltd.). She started her career in the investor relations services for Japanese companies listed abroad. Rieko completed University of Tokyo Executive Management Program (EMP) in 2014, graduated from the Graduate School of Economics in the University of Tokyo with an M.A. majoring in contemporary economics in 2004 and received an LL.B. in laws from Kyoto University in 1995.

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Chief Financial Officer
Hiroaki Iwata

Hiroaki Iwata joined Bayview Asset Management Co., Ltd. (BVAM) as general manager of the Investment Management Planning Division in October 2004, and was subsequently appointed as general manager of the Marketing Planning Division, the general manager of the Investment Management Operations Division, the general manager of the Investment Management Services Division and the general manager of the Corporate Administrations & Operations. He was promoted to chief financial officer in April 2011 and executive officer in July 2014. Prior to joining BVAM, he joined Yamaichi Securities Co., Ltd. in 1990 and assigned to Yamaichi Investment Trust Management Co.,Ltd. (current Mitsubishi UFJ Kokusai Asset Management Co.,Ltd.), where he was engaged in the management of investment trusts investing in Japanese equities, bonds and convertible bonds. Since 1993, he has been responsible for active management type investment trusts investing mostly in Japanese equities as a fund manager. Thereafter, he took on responsibilities from asset management product development, marketing to documentation at the Product Planning Division, Product Marketing Division and Sales Planning Division. Hiroaki received a B.A. in science from Rikkyo University in 1990. He is a Chartered Member of the Securities Analysts Association of Japan (CMA).

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Auditor
Tsuneo Suzuki

Tsuneo Suzuki joined Bayview Asset Management Co., Ltd. (BVAM) in June 2014 as an advisor, and was appointed as auditor in the following month of July. In 1976, he started his career at Yamaichi Securities Co., Ltd. where he became assistant manager of Marketing Planning Division and the manager of the Machida, Kita Kyushu, and Ikebukuro branch offices, respectively. In 1998, he moved to Commerzbank AG. After serving as the as general manager of the Marketing Division, in 2003, he joined E*TRADE Securities Co.,Ltd.(current SBI Securities Co.,Ltd.) where he supervised online and face-to-face sales as the general manager of the Marketing Planning Division. Following this, in 2004, Tsuneo joined the Financial Services Agency (FSA) where he performed many inspections of financial institutions as an inspector in the Inspection Division and Inspection Coordination Division of the Securities and Exchange Surveillance Commission (SESC). He was promoted to become the first chief inspector with a private industry background in July 2011. Tsuneo received a B.A. in economics from Fukushima University in 1976 and is a Certified Fraud Examiner.

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Auditor
Nobuaki Tomaru

Nobuaki Tomaru has been Auditor for Bayview Asset Management Co., Ltd. (BVAM) since April 2002. Nobuaki started his career at Arthur Andersen & Co. SC. Uno Tax Accountant Office(current KPMG Tax Co.) in 1993. During his five years at KPMG, he consulted with a wide range of Japanese and foreign financial institutions including BVAM. He also dealt with cases in Japanese leveraged leases, equity holdings ownership, international investments, and lawsuits related to taxation. In 1998, Nobuaki established the Tomaru Tax Account Office. This office covers different accounts from manufacturers to financial institutions and also offers consultation on re-organization. Nobuaki received a B.A. in law from Keio University in Tokyo in 1993. He is a Certified Public Tax Accountant.