Maya Funaki, the portfolio manager credited with the strong performance of RBC BlueBay Asset Management's Japan Equity strategy, is leaving the firm. Funaki has been instrumental in the fund's success, which has seen its assets under management grow to $5.68 billion as of June 30, 2026. Under her leadership, the strategy has significantly outpaced its benchmark, the MSCI Japan Total Return Net Index.
Funaki's departure comes at a time when Japanese equities have been experiencing a surge. In 2025, the MSCI Japan Index surpassed its 1989 highs, driven by corporate governance reforms, improved fundamentals, and reasonable valuations. RBC BlueBay Asset Management had previously highlighted Funaki's positive outlook for 2026, citing strong momentum and increasing investor sentiment for Japan, despite potential challenges like high inflation and geopolitical tensions with China.
The Japan Equity strategy, which Funaki managed, aims for long-term capital growth by investing primarily in equity securities of Japanese companies. The fund's investment philosophy focuses on businesses with high or improving returns and stocks perceived to be at a discount to fair value. Its top holdings include Kioxia, Tokyo Electron, and Sumitomo Mitsui Financial. As of June 30, 2026, the strategy had 82 holdings (excluding cash) with an active share of 35.3%.
The fund's performance has been robust, with a gross return of 36.32% over one year and 24.59% year-to-date in 2026, outperforming its benchmark's 29.11% and 15.78% respectively. Over a 10-year period, the strategy delivered a gross return of 12.78% against the index's 9.84%. Funaki's exit raises questions about continuity and potential shifts in the strategy's management and investment approach.
