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 58
(as of January 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 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)

Organization

(図)

Corporate Management Team

(写真:八木 健)

President and Chief Executive Officer
Ken Yagi

(写真:村住 直孝)

Director
Naotaka Murasumi

(写真:工藤 雄二)

Director
Yuji Kudo

(写真:下城 理重子)

Director
Rieko Shimojo

(写真:岩田 浩明)

Chief Financial Officer
Hiroaki Iwata

(写真:鈴木 恒雄)

Auditor
Tsuneo Suzuki

(写真:都丸 伸顕)

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 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.

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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.