In a significant strategic move, Nomura Asset Management has announced the disbandment of its once-flagship Japanese equities fund, Big Project-N. Launched in February 2000, the fund initially made waves by surpassing 1 trillion yen ($9 billion at the time) in assets, marking a historic milestone for domestic investment trusts. However, the collapse of the information technology bubble soon after its launch initiated a prolonged period of underperformance for Big Project-N, leading to its current status of disbandment.
Big Project-N struggled to regain its initial momentum as it remained below its starting price of 10,000 yen for over fifteen years. Despite being a prominent player in the market, the fund consistently underperformed against the Topix index by a considerable margin. As a result, its assets dwindled to approximately 56 billion yen, a stark contrast to its early achievements. This underperformance has prompted Nomura Asset Management to make the difficult decision to close down the fund and disband its management team.
The decision to terminate Big Project-N is part of Nomura Asset Management's broader initiative to streamline its investment trust lineup. Currently managing around 700 investment trusts, the company has set a target to halve this number by 2030. This strategic shift aims to enhance operational efficiency and focus resources on high-performing funds that align with market demands and investor interests.
Although no specific date has been provided for the disbandment of Big Project-N, it is clear that Nomura Asset Management is committed to optimizing its portfolio. While the exact reasons behind Big Project-N's persistent underperformance remain unspecified, the company's actions reflect a resolve to address challenges and position itself for future growth.
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