Bancorp Wealth Management has launched a Japan-registered fund specialising in New Zealand investment, after working on the project for more than two years.The fund will allow Japanese investors to specifically invest in products and companies in this cou
Bancorp Wealth Management has launched a Japan-registered fund specialising in New Zealand investment, after working on the project for more than two years.
The fund will allow Japanese investors to specifically invest in products and companies in this country.
In conjunction with Japanese securities company, Bansei Yamamaru Securities, the flagship Japan New Zealand Fund aimed to grow to $300 million (about 18.5 billion yen) within two years, Bancorp said today.
"This is a milestone for New Zealand and Japan as it is the only registered fund in Japan with a distinct New Zealand focus," Craig Brownie, managing director of Bancorp Wealth Management and Bancorp New Zealand, said.
"As such, Bancorp and Bansei are confident that it will attract a lot of interest from Japanese investors who want exposure to New Zealand but in yen and with liquidity that is quoted daily in the Nikkei."
The Japan New Zealand Fund would provide good returns to Japanese investors and promised to increase investment in New Zealand and awareness generally of what this country had to offer, Mr Brownie said.
The Japan fund would invest in Japanese-issued yen bonds, Japanese listed companies with interests or a bias to New Zealand, as well as New Zealand bonds, listed equities and private equity with a bias towards trade with Japan.
"Until today, really the only way the Japanese could invest in New Zealand was through NZD deposits or the carry trade," Mr Brownie said.
"Naturally we think the Japan New Zealand Fund will appeal to a segment of the market that has been largely untapped and so we expect interest to grow and also lead onto other opportunities."
The Japan New Zealand Fund was a unit trust, with the Japanese institutions participating in the offer including Sumitomo Trust and Banking, Mitsubishi UFG Financial Group and Bansei Asset Management.
