Our strategy aims to take advantage of the twin themes of stock undervaluation and corporate restructuring to unlock value. We believe that the playing out of these themes will be a major driver of the Japanese equity market over the coming years.
The fund management team uses a bottom-up investment strategy focused exclusively on individual stock selection decisions and driven by fundamental company analysis.
In order to identify stocks whose market prices are below their intrinsic value, the team employs a dual quantitative and qualitative approach. Our quantitative screen uses various indicators including the M&A ratio. Our qualitative process allows flexibility to focus on the key factors determining long-term outperformance.
Our strategy aims to outperform the TOPIX Index by +3% p.a. with an associated risk level of around up to 10% p.a.
This strategy is the result of several years of development on the part of Nomura. Launched in 2000 and initially only available to Japanese investors, it has produced an excellent performance record since inception. The strategy's continued success is attributable to the established and stable investment team, substantial research platform and a consistent, unconstrained, value orientated, bottom-up approach.
The strategy is also available for investment in a pooled UCITS compliant vehicle.
In a nutshell, our approach is: