#Japan #Tokyo #Asset Management One #Impact Fund #Kampo Life

Introduction

Kampo Life Insurance Co., Ltd. and Asset Management One Co., Ltd. have unveiled a new investment initiative focusing on small and medium-sized publicly listed companies in Japan. Named the "AMOne Domestic Small and Medium-Sized Equity Impact Strategy Fund", this venture aims to tackle social and environmental issues while seeking to improve investment returns.

Fund Overview

The primary goal of this fund is to support the business activities of small and medium-sized companies that are committed to addressing social and environmental challenges. By investing in approximately 30 to 50 small and mid-cap stocks expected to grow sustainably over the long term, the fund aims to balance financial performance with societal impact.

Kampo Life, as the asset owner, has identified key impact themes aligned with its sustainable investment strategy that emphasizes "well-being improvement", "community and social development", and "contribution to environmental protection". Asset Management One is charged with the operational management of the fund, working closely with these identified themes.

Supporting Emerging Companies

Many newly listed companies face challenges in attracting investment from institutional investors, who are the principal funders of the stock market, largely due to their small market capitalization. This situation often results in these emerging enterprises not receiving the necessary support through investments or engagement initiatives. The focus of this fund is to bridge this gap by pairing seasoned fund managers with analysts skilled in impact evaluation. Together, they will provide both funding and dialogue, creating a collaborative environment aimed at enhancing corporate value and expanding societal impacts.

Asset Management One's Commitment

Asset Management One champions the message, "Nurturing the future through the power of investment". The firm is dedicated to stewardship activities, including engagement, and has pioneered distinctive investment products such as engagement-focused passive funds. Their unique ability to facilitate dialogue is evident in their initiatives, including the "All Japan Carbon Neutral Strategy". The management of this fund will be entrusted to a fund manager who boasts a rich history in small-cap strategies, having received accolades for five consecutive years from R&I Fund Awards in the domestic small and mid-cap category.

Kampo Life's Sustainable Investments

Kampo Life has been a long-time advocate for sustainable investments. The company has accelerated its impact-oriented investments since 2022 as part of its "Impact K Project", aiming to broaden its influence in the field of impact investing. This includes financing startup businesses derived from university partnerships and making investments in impact investment funds. Notably, Kampo Life became the first domestic life insurance company to join the Global Impact Investing Network (GIIN), highlighting its leadership in the impact investing sphere.

Future Outlook

Through the AMOne Domestic Small and Medium-Sized Equity Impact Strategy Fund, Kampo Life and Asset Management One aspire to forge new growth opportunities within the impact investing market. By robustly supporting the growth of domestic emerging companies, they aim to contribute to a sustainable future for Japan.

Conclusion

In summary, the launch of this impact fund marks a significant step towards fostering the growth of socially responsible companies in Japan. By aligning financial returns with social responsibility, the fund could be a game-changer in promoting sustainable development and enhancing the quality of life for communities across the nation.

For more details, you can explore the websites of Kampo Life and Asset Management One.