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Japan

Small Cap Absolute Value

LEAD MANAGER

Tatsuro NIGAURI

PERFORMANCE

No set target, aims for long-term capital appreciation

STYLE

Value

BENCHMARK TARGET

Reference indices: Russell/Nomura Small Cap (with div) and TOPIX (with div)

By adopting a value investment approach and focusing on extensive research, we are able to unearth companies with true earnings potential and exploit the opportunities that exist within the niche Japanese small cap market

 

LEAD MANAGER

Tatsuro NIGAURI

Key Strengths

Unrivalled Access

Small cap markets are sparsely covered by analysts – We pride ourselves on having a deep understanding of the companies through our extensive research process and volume of meetings to uncover attractive companies at deep discounts to their intrinsic value

Extensive Track Record

The award winning portfolio manager has almost 30 years’ experience investing in the Japanese equities small cap sector delivering strong outperformance since inception. The strategy has been recognised with a number of industry awards

Hidden Gems

The strategy aims to identify unloved and neglected companies, relying on our research driven, bottom-up stock picking approach to unearth companies with true earnings potential and exploit the opportunities that exist within the Japanese small cap market

Investment Approach

At the heart of the strategy’s philosophy is the belief that the Japan small cap market is not efficiently priced due to the relative lack of coverage by asset managers. There are too many companies in the investible universe that are under-researched, with little or no coverage. Consequently, the small cap universe provides numerous opportunities for active managers to find mispriced stocks.

The portfolio manager has a disciplined investment style where he focuses on PER –price to earnings ratio-, which we believe is the most effective indicator in Japanese small cap market. We typically hold a stock until the market notices and corrects the undervaluation. We can be patient because our extensive company research ensures stability and strength of fundamentals of invested companies. The manager is unrivalled in terms of the volume of company research he has conducted during his career.  He has met a few thousand companies in his career and counting, and continues to meet around 900 companies in a year now, providing an enviable knowledge bank of insights into the small cap market.

Why Japan Equity Small Cap Absolute Value?

Award-winning portfolio manager: Having managed the strategy since inception, Tatsuro Nigauri has received prizes from the R&I Fund Contest (2012, 2013, 2014 and 2015), as well as the Lipper Fund Awards Japan (2012 and 2013) and J Money Fund Awards (2016). As a result, Mr Nigauri is well known by companies’ management in the sector and they will often make him their first call when organising investor relations trips, helping to free up time for Mr Nigauri and his team.

Distinctive Value-biased investment approach: By adopting a distinctive Value-biased investment approach and focusing on extensive research gleaned over the course of over two decades of research into small-cap Japanese equities, Mr Nigauri is able to unearth companies with true earnings potential and exploit opportunities that exist within the niche Japanese small-cap market.

Local expertise and native Japanese equity portfolio managers: Direct and easy access to an often opaque Japanese market gives us the ability to navigate the idiosyncrasies of the small and micro-cap market. Given how crucial assessment of company management is in this area, we feel this gives us an advantage over our competitors.


SFDR Sustainability Reports

SMDAM Sustainability Homepage

SFDR Disclosure – Japan Equity Small Cap Absolute Value (Article 6)

Key Facts

LEAD MANAGER

Tatsuro NIGAURI

PERFORMANCE

No set target, aims for long-term capital appreciation

STYLE

Value

BENCHMARK TARGET

Reference indices: Russell/Nomura Small Cap (with div) and TOPIX (with div)

TRACKING ERROR RANGE

No Set Target

NO. OF HOLDINGS RANGE

Circa 200

OFFERED AS A SEGREGATED STRATEGY?

Yes

OFFERED AS A POOLED STRATEGY?

Yes

INCEPTION DATE

May 2004

GIPS® COMPLIANCE

Yes

Latest Factsheets

31 March 2024

Japan Equity Small Cap Absolute Value Factsheet – March 2024

29 February 2024

Japan Equity Small Cap Absolute Value Factsheet – February 2024

31 January 2024

Japan Equity Small Cap Absolute Value Factsheet – January 2024

Japan

Fundamental Active

LEAD MANAGER

Masashi KAMOHARA

PERFORMANCE TARGET

2%-3% p.a. above Benchmark

STYLE

Core: Value & Growth

BENCHMARK

TOPIX (With Dividends)

“Our dual approach to stock selection and flexible portfolio rebalancing sets us apart from our competitors”

LEAD MANAGER

Masashi KAMOHARA

Key Strengths

Style Agnostic

Style agnostic approach to generate consistent alpha

Local Experts

Japan based expertise to conduct rigorous fundamental research

Strong Track Record

Proven long term track record in allocating to Large / Mid Cap shares

Investment Approach

We believe that market inefficiencies result in share price overvaluation and undervaluation from time to time. Our investment philosophy is to “achieve stable excess returns through active management” in the long-term by taking advantage of market inefficiencies.

We achieve these goals by:

Analysing fundamentals from a global perspective

Investing actively through a well-defined and structured process

Maintaining a consistent investment style with comprehensive risk management

Product Philosophy

Our investment management philosophy for the Japan Equity Fundamental Active product is derived from our belief that, even in a generally recognised value oriented Japanese market, it is possible to generate greater alpha by effectively combining quality value and earnings momentum focused growth stocks in a portfolio. We achieve this through rigorous fundamental research to identify catalysts for price appreciation ahead of the market, without taking undue risk.

Style

Our Japan Equity Fundamental Active product is designed to be style agnostic and it aims to provide excess returns by utilising a combination of flexible value and earnings momentum driven fundamental stock selection with sector allocation overlay.

Competitive Advantage

Style Agnostic: Freedom to generate alpha in all market conditions and not be style led. The benefit of not being a purely traditional value strategy

Agile Approach: Whether there is a preference for value or growth, large, mid or small caps, our agile approach to the Japanese market has led to outperformance in most scenarios

Local expertise and native Japanese equity portfolio managers: The ability to deal with the idiosyncrasies of the market allows the PM’s to effectively pick attractive stocks across the market cap spectrum

Consistent Outperformance: Alpha generated without taking undue risk

 


SFDR Sustainability Reports

SMDAM Sustainability Homepage

SFDR Disclosure – Japan Equity Fundamental Active (Article 6)

Key Facts

LEAD MANAGER

Masashi KAMOHARA

PERFORMANCE TARGET

2%-3% p.a. above Benchmark

STYLE

Core: Value & Growth

BENCHMARK

TOPIX (With Dividends)

TRACKING ERROR RANGE

10% Maximum

NO. OF HOLDINGS RANGE

100-150

OFFERED AS A SEGREGATED STRATEGY?

Yes

OFFERED AS A POOLED STRATEGY?

Yes

INCEPTION DATE

July 2007

GIPS® COMPLIANCE

Yes

Latest Factsheets

31 March 2024

Japan Equity Fundamental Active Factsheet – March 2024

29 February 2024

Japan Equity Fundamental Active Factsheet – February 2024

31 January 2024

Japan Equity Fundamental Active Factsheet – January 2024

Japan

Value + Alpha

LEAD MANAGER

Shinichi SHIMONISHINOSONO

PERFORMANCE TARGET

2% – 3% p.a. above benchmark

STYLE

Value

BENCHMARK

TOPIX (with div)

“Japan Equity Value + Alpha caters for institutional investors seeking stable returns from investments through active management built on a Value approach respectful of ESG considerations”

LEAD MANAGER

Shinichi SHIMONISHINOSONO

Key Strengths

Consistent Value Approach

We pursue superiority in active management over the medium to long term through a consistent value approach

Rigorous Corporate Research

Superior bottom up stock selection based on our extensive research activities

Focus on Engagement

We consider positive engagement activities to be a source of value

Investment Approach

We believe that market inefficiencies result in share price overvaluation and undervaluation from time to time. Our investment philosophy is to “achieve stable excess returns through active management” in the long-term by taking advantage of market inefficiencies.

We achieve these goals by:

Analysing fundamentals from a global perspective

Investing actively through a well-defined and structured process

Maintaining a consistent investment style with comprehensive risk management

Product philosophy

The theory behind our investment management philosophy for Japan Equity Value + Alpha is derived from our belief that, even in a generally recognised Value oriented Japanese market, it is possible to generate greater alpha by effectively combining good quality, earnings driven, flow value focused stocks in a portfolio through rigorous fundamental research to identify catalysts for price appreciation ahead of the market, without undue risk.

Style

We would classify our investment style for this product as fundamental bottom-up earnings driven Value style.

 


SFDR Sustainability Reports

SMDAM Sustainability Homepage

SFDR Disclosure – Japan Equity Value + Alpha (Article 6)

Key Facts

LEAD MANAGER

Shinichi SHIMONISHINOSONO

PERFORMANCE TARGET

2% – 3% p.a. above benchmark

STYLE

Value

BENCHMARK

TOPIX (with div)

TRACKING ERROR RANGE

3% (in principle) – 7%

NO. OF HOLDINGS RANGE

120 Max

OFFERED AS A SEGREGATED STRATEGY?

Yes

OFFERED AS A POOLED STRATEGY?

No

INCEPTION DATE

October 1996

GIPS® COMPLIANCE

Yes

Latest Factsheets

31 March 2024

Japan Equity Value + Alpha Factsheet – March 2024

29 February 2024

Japan Equity Value + Alpha Factsheet – February 2024

31 January 2024

Japan Equity Value + Alpha Factsheet – January 2024