Weak Yen Fuels Inflows as Power Revolution Fund Tops 700bn YenA · FULL TRANSLATION
- SMDAM's 'Power Revolution' fund's net assets topped 700 billion yen.
- It targets power and energy-innovation themes, with hedged and unhedged classes.
- Rapid growth reflects strong demand for thematic growth funds.
- Low rates and a weak yen push money toward higher returns.
SMDAM's Newton Power Innovation Fund, nicknamed 'Power Revolution,' topped 700 billion yen in net assets. Behind the marketing is a clear read on where Japanese retail money is flowing. The fund rides a long-term power-demand story, AI data centers, EVs, renewables, and offers hedged and unhedged classes amid volatile FX. Its surge fits the backdrop: the expanded new NISA ignited retail investing while low rates and a weak yen erode cash, pushing money toward higher returns. For investors it is a flow thermometer signaling elevated risk appetite, but the better the story, the more one should check valuations and hedging. Watch inflow durability.
Sumitomo Mitsui DS Asset Management (SMDAM; President & CEO: Wataru Ogiwara, Minato, Tokyo) announced that the net assets of its open-end fund 'Newton Power Innovation Fund (hedged/unhedged),' nicknamed 'Power Revolution,' have topped 700 billion yen.
The fund focuses on long-term growth themes in power and energy innovation, offering hedged and unhedged classes so investors can choose based on their yen outlook and risk appetite. The company says the rapid growth reflects strong investor interest in the theme. Amid the new NISA rollout, low rates and a weak yen, Japanese investors are actively seeking higher-return options, drawing heavy inflows into thematic funds.