Nomura Asset Management Co., Ltd., one of Japan’s largest asset management companies, set up “Nomura ACI Advanced Medical Impact Fund” in 2018. The Fund aims to generate profits and solve social issues through investment in advanced medicine and healthcare related companies worldwide, focusing its attention on the area of advanced medicine and healthcare.
Nomura ACI Advanced Medical Impact Fund was launched in 2018 as a publicly offered investment trust. Four different funds (A-D) are offered under the main fund, each with varying dividend payout schedules and the option to currency hedge.
In addition, “Nomura ACI Advanced Medical Impact Fund Mother Fund” was established as a mother fund. A portion of the mother fund management is contracted to American Century Investment Management, Inc. (ACI) as the fund manager.
ACI is a privately-controlled, independent investment management firm, headquartered in Kansas City, Missouri. ACI’s founder James E. Stowers established Stowers Institute for Medical Research in 1994 to contribute to society. It is a principal shareholder of ACI, and ACI uses stock dividends to support research conducted by the Institute. Stowers Institute for Medical Research seeks out innovative new cures, working with BioMed Valley Discoveries, a disease-related research and development organization.
This project combines ACI's management strategy in the medical field with Nomura Asset Management's strong sales channels to develop the advanced medical field and secure investment income at the same time.
1）Provision of impact investing opportunities to general individual investors through utilization of an investment trust
In this project, individual investors are invited to invest in the baby funds. Traditionally, major impact investors have been financial institutions, venture capitals, and angel investors. This fund provides opportunities, as a publicly offered investment trust, to individual investors with diverse values to take part in impact investing, even with small amounts.
Furthermore, this fund adopts the family of funds method, offering four different funds under the main fund, with varying dividend payout schedules and the option to currency hedge, thus addressing various investor needs.
2）Collaboration with progressive overseas investors
This project utilizes know-how on overseas impact investing activities through collaboration with ACI. It is unique in that it utilizes impact investing expertise and practices from overseas markets as there are only a few precedents for impact investing available in Japan.
3）Applying the SDGs
This project establishes the following four criteria based on SDG-Goal 3 to “ensure healthy lives and promote well-being for all at all ages” in structuring the portfolio of the mother fund. It also conducts a social impact measurement for companies that meet these criteria to select final investee companies.
This project is characterized by applying the SDGs as a concept that can be globally shared among various stakeholders.
Portfolio structuring process
*This case is based on the contents of case studies in “The Current State of Impact Investing in Japan 2018” (pp27-32).