In this paper, CIO Yuichi Murao reviews some key drivers of corporate governance reform within Japan, promising developments in shareholder activities, and NAM’s own efforts to promote improved corporate value through engagement.
Historically, Japan has been a difficult market for many overseas investors to fully comprehend, with several misconceptions about the Japanese corporate sectors. Andrew McCagg, Senior Client Portfolio Manager at Nomura Asset Management discusses reasons to take a closer look at Japanese equities.
We are excited to publish the 2021 Impact Report for the Japan Sustainable Equity Growth strategy, and hope that all our stakeholders will find this another positive step forward in the journey we are on together towards a positive environmental and social impact.
Higher inflation. Disrupted supply chains. Heightened geopolitical tensions. Within today’s challenging and uncertain environment, Japan offers unique advantages. In this paper, CIO Yuichi Murao explores how technological leadership, evolving corporate governance, and attractive valuations of Japanese companies create appealing opportunities for investors.
Toshiyuki Imamura, Head of the Responsible Investment Department, explains the upcoming restructuring of the Tokyo Stock Exchange market. He shares his insight on the potentially positive impact this change could have on shareholder representation and the role of corporate boards.
Japan’s Liberal Democratic Party (LDP) on 29 September, chose Mr. Fumio Kishida, former Foreign Minister and LDP Policy Chief, as the new party president. Click below to read our report on trends in Japanese stocks and global investor interest in the wake of this leadership election.
Yuichi Murao, Equity CIO, Nomura Asset Management, offers insight into recent ESG developments in Japan. He explains growing commitments to carbon neutral policy and Japan’s strong position in the development of green technologies, while forecasting governance improvements to accompany the revised corporate governance code.
Responsible Investment is a core feature of NAM’s corporate strategy. This report includes a detailed account of our commitment to the TCFD (Task Force on Climate-related Financial Disclosures), focusing on our engagement and governance activities along with climate change related risks and opportunities.
Yuichi Murao, CIO Equity, Nomura Asset Management Ltd. explains that after dissecting the corporate financial results of an extraordinary fiscal year for Japan’s equity market, our teams of 22 sector analysts and 38 Japan equity portfolio managers in Tokyo are preparing for the AGM season that kicks off in early June. With an approved list of more than 2000 Japanese equities, this is a period of intense scrutiny from our investment professionals into earnings guidance and corporate strategy.
We are pleased to publish our annual dedicated Impact Report, which outlines the progress our Global Sustainable Equity Fund has been making through its investment and engagement with companies that we feel have the greatest total positive impact on society.
Wataru Ogihara, Equity CIO of Nomura Asset Management, explains why Japan offers some unique and compelling investment opportunities, and why this market could be overdue for a re-evaluation in 2021. He highlights the “great rotation” between value and growth stocks, Japan’s appeal to small-cap and ESG focussed investors, the lasting impact of structural reforms, and the implications of China’s rapid recovery.
Alex Rowe, CFA, Lead Portfolio Manager of the Nomura Global Sustainable Equity Strategy discusses the importance of impact investments and how the Nomura Framework helps to achieve the UN Sustainable Development Goals (UN SDGs). Read the full interview with Institutional Asset Manager.
As widely expected, Yoshihide Suga, former chief cabinet secretary, was voted as Prime Minister on 16 September. Shinzo Abe announced his resignation at the end of August, citing ill-health. Suga stated his top priorities to be managing the pandemic and strengthening the economy. He signalled a continuation of Abenomics growth policies - monetary easing, fiscal spending and structural reforms.
Economies around the world are now steadily reopening from what has been widely described as an “induced economic coma”. Their recoveries are underpinned by assertive monetary easing policies, including central bank balance sheet expansion and credit support, together with fiscal stimulus packages that have been inventive and unprecedented in scale. However, the optimistic and partly liquidity driven equity market narrative met some resistance in June, which brought with it a rise in volatility and a more circumspect tone. Japan’s broad market rebound effectively hit the ceiling in June as the TOPIX ended fractionally lower, losing 0.2% on the month.
The case for investing in Japan has always relied on its many world-leading companies. In times of heightened uncertainty and acute economic stress, we believe quality companies that are adaptive, resilient and innovative will emerge even stronger. This pandemic will test their competitiveness, but those true winners will continue to reign. From a growth portfolio manager’s perspective, our objective is to identify these winners in the Japan equity market that are adapting and strengthening their businesses under challenging conditions.
We are pleased to publish our first dedicated Impact Report, which outlines the progress our Global Sustainable Equity Fund has been making through its investment and engagement with companies that we feel have the greatest total positive impact on society.
While Europe and the USA are suffering massively from the coronavirus crisis, many Asian countries are already further ahead in terms of the outbreak’s progression and their containment measures. We asked our Senior Investment Specialist Min Feng whether the Asian markets can continue to outperform over the next few months.