Skip to main content

Japan

Sustainable Dividend

Lead Manager

Seiji IWAMA

PERFORMANCE TARGET

Not Set

STYLE

Not style focussed

BENCHMARK

Reference Index: TOPIX (with dividends)

This strategy seeks to deliver higher returns with lower volatility, providing attractive investment opportunities  in a low growth economy as a result of the corporate governance reforms in Japan

Lead Manager

Seiji IWAMA

Key Strengths

Sustainability of Dividends

We seek out companies with high retained earnings and sustainable business models that are likely to retain high dividend yield with low risk of dividend reductions

Corporate Governance Reforms

Capitalise on reforms to enhance shareholder value, improve capital efficiency and enhance investor returns. Positive earnings growth and structural reforms will continue to support corporate returns

Low Volatility

Aim to keep total portfolio risk below 0.8 times that of TOPIX through stock selection, portfolio construction and risk controls

Investment Approach

With this strategy we aim to reap the benefits from Japan’s economic and corporate governance reform, by investing in quality companies with strong balance sheets that are proponents of good corporate governance.  We seek to identify companies with an enduring competitive advantage where the sustainability of dividend payments can be assured.

The strategy holds approximately 70 – 90 best performing companies in terms of sustainable earnings and dividend growth with an eye on dividend yield

We endeavour to provide a compelling total return in a risk controlled environment capturing the upside rallies whilst protecting against the downside.

Qualitative factors to determine quality

Qualitative evaluation factors used to identify stocks for further research are the company’s stance on shareholder returns and their dividend policy among others. This will indicate the sustainability and level of future dividend pay-outs.

Quantitative factors to determine dividend yield

Quantitative evaluation factors such as expected dividend yield and other stock price indicators are looked at in order to determine dividend yields. Only stocks with an expected dividend yield above the median are selected.

Award winning strategy

Our Japan Equity Sustainable Dividend Fund has won the Asset View Award for the top ranked fund 2 years consecutively in the Japanese Equity – All Cap (Yen) category as at 31 December 2017 and 31 December 2018, by CAMRADATA.

 

Key Facts

Lead Manager

Seiji IWAMA

PERFORMANCE TARGET

Not Set

STYLE

Not style focussed

BENCHMARK

Reference Index: TOPIX (with dividends)

TRACKING ERROR RANGE

Not Set

HOLDINGS RANGE

70-90

OFFERED AS A SEGREGATED STRATEGY?

Yes

OFFERED AS A POOLED STRATEGY?

Yes

INCEPTION DATE

March 2013

GIPS® COMPLIANCE

Yes