Sumitomo Mitsui Trust Asset Management (SuMi TAM), one of the largest asset managers in Japan with an AUM of $626 billion has established a foothold in North America with the opening of an office in New York.

The office forms part of a new subsidiary, Sumitomo Mitsui Trust Asset Management Americas, (SuMi TAMA). SuMi TAMA will aim to provide US investors access to SuMi TAM’s portfolio management expertise focusing on return streams within Japan’s markets that may not be typically targeting by US investors, such as the Japanese micro-cap market.

SuMi TAMA will develop a new suite of products specifically tailored to the US market based on client demand. Initially SuMi TAMA will offer unique Japanese equity strategies like micro-cap equities, followed by Impact Opportunities, leveraging its fundamental research, ESG, and stewardship capabilities. SuMi TAMA’s fund distribution efforts will be led by locally hired relationship managers.

Conversely, SuMi TAMA will also conduct research on external products for Japanese investors, including those from US-based managers, and serve as the operational hub for SuMi TAM’s global ESG activities by engaging with US companies that SuMi TAM invests in.

The firm believes that ESG consideration in investment management is integral to the pursuit of upside potential, curbing downside risks, and has taken initiatives through its ESG Research and Development Office to support a global approach.

The new US venture will be led by Shigeki Katoh, President and CEO of SuMi TAMA. Mr Katoh is a seasoned professional with 28 years of asset management experience at SuMi TAM. He will report to Yoshio Hishida, Representative Director and President of SuMi TAM in Tokyo.

Mr Hishida said: “Establishing a new office in the U.S. is part of our strategic expansion and a big step towards achieving our goal to strengthen SuMi TAM’s global presence within the asset management industry. We know that the U.S. can be a tough market for non-U.S. managers, and understand that it may take time for our efforts to bear fruit. But we believe we can expand our footprint by building long term relationships with investors, meeting their expectations, and earning their trust.”