Mitsubishi UFJ Trust and Banking Corporation (the Trust Bank), part of Mitsubishi UFJ Financial Group (MUFG), and Clearbrook, LLC, a $13 billion asset manager, have launched the MUFG Japan Small Cap Active ETF (Ticker: MJSC). Clearbrook specializes in multi-asset, venture capital, and impact investing strategies. This is MUFG’s first exchange-traded fund for U.S. investors.
The MUFG Japan Small Cap Active ETF is an actively managed fund. It focuses on Japanese companies that are pioneering and innovative. The goal is to find firms with strong growth potential, good valuations, and better corporate governance. This strategy uses a thematic investment approach. It focuses on Japanese small-cap stocks that have global appeal. The portfolio covers 18 sector themes. These include semiconductors, automotive, national resilience, and entertainment. Each theme has sub-themes to further diversify holdings.
“This is a great chance for Japanese companies and their investors,” said Katsumi Koga, Executive Officer of Asset Management at Trust Bank. American investors want easier ways to enter Japan. This comes as Japan is moving out of years of deflation and seeing stable corporate earnings. Japanese companies have lower P/E ratios than their U.S. and European counterparts. They also have a stronger labor market than seen in decades. This makes them an attractive investment option.”
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Elliott Wislar, Founder and CEO of Clearbrook, said: “Many investors want exposure to Japan but face high minimums.” With this ETF, we’ve created an affordable and accessible option for the broader market. Partnering with MUFG, a top expert in Japan, helps us give U.S. investors direct access to the promising small-cap sector there.”
Yoshitaka Nagano will manage the fund. He has 27 years of experience and joined MUFG in 1996. Since 2018, he has been with the Trust Bank’s Japan Small Cap Equity team. Clearbrook, LLC will advise the ETF. The Trust Bank and ETC will be sub-advisors. The MUFG Japan Small Cap Active ETF is hosted by series trust provider The RBB Fund, Inc.