Nikko Asset Management Co., Ltd. announced that it will launch a fund focusing on Japanese small- and mid-cap stocks.
The “Nikko Japan Small-mid Cap Growth Fund” will be an open-ended securities investment fund, and Nikko Cordial Securities Inc. will offer subscriptions to the fund from November 1, 2005, and the official launch and initial investment operations will commence on November 21, 2005.
Nikko reports that the fund will invest in companies whose market cap is less than 200 billion yen. Among start-up companies entering into niche markets and companies in the process of revitalizing their business, the fund will focus on those with high profit growth rates.
Nikko AM plans to select 50 to 100 companies that have strong earnings momentum and thereby have a high potential for a rise in their stock price.