Diversified Growth Strategy

We believe that a diversified beta exposure to different asset classes can provide stable positive returns over the long-term. As market conditions change constantly, an active, judgmental approach is key to keeping ahead of global market moves.

Our allocation decisions are a function of our analysis of the global investment environment, adjusted by our assessment of portfolio risk.

Our Investment Approach

The portfolio is top-down and dynamic, implemented via passive underlying funds and other inexpensive instruments.

We seek to generate stable absolute returns by actively allocating across a broad range of asset classes. The allocation decision is a function of our analysis of the global investment environment and total portfolio risk control. With input from our Multi Asset Investment Committee, the team identifies critical variables and catalysts, and with this, maps out the general investment steps to take accordingly.

Non-traditional assets (including REITs, commodities, gold, high yield bonds) are included to enhance the risk/return profiles of traditional assets (fixed income, equities). The team employs a long only strategy due to the belief that all asset classes will deliver positive return in the long run.

Background to Investing 

At its outset, the investment team managed multi asset mandates which invested in traditional asset classes including Japanese and international equities and bonds, using asset weights defined by our clients.

In 2005, encouraged by client requests for diversification and a more dynamic asset allocation approach, the team began to invest in alternative assets, including REITs, commodities and credit as well as the more traditional asset classes. In April 2010 the strategy was officially refined as an absolute return strategy.

Masaya Hirao, Head of our Multi Asset Investment Team is the senior portfolio manager with over 22 years of industry experience, and is responsible for making the final investment decisions in this strategy.

Investment Style 

Our approach is:

• Long only with no leverage
• An agile / flexible investment approach that combines traditional and non-traditional asset classes
• Strong long-term performance track record (low volatility with stable returns)
• Cost effective structure, investing in ETFs, currencies and futures
• With a stable an experienced investment management team, based in Tokyo

 The Nomura Diversified Growth Strategy is available for investment via our Dublin-based Irish domiciled UCITS fund.