Nomura Funds Ireland – Japan High Conviction Fund
Morningstar Overall Ratings as at 31-01-2020. Copyright © 2020 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar rating based on the lead share class: Japan High Conviction I JPY.
Our investment philosophy is that a sustainable level of high ROE will lead to growth in shareholder’s equity, which in return leads to stock price appreciation.
Both the future level and the direction of ROE are vital, not the current level – this is where our experience and expertise can add value.
Our investment objective is to construct a concentrated portfolio of our best ideas aiming to capture stock appreciation combined with the long-term sustainable growth of shareholders’ equity. Our concentrated and unconstrained approach is:
- Bottom-up, within a disciplined and repeatable framework, and supported by extremely large research resources.
- Large-cap market bias.
- Has no sector constraints.
- Has a long-term investment time horizon.
Our Investment Approach
Invest in fundamentally attractive companies that can sustain high ROE over the long term
- Only companies capable of sustaining high levels of ROE and a demonstrable competitive edge can be included in our stock universe.
- Positioning of individual stocks within the portfolio based on factors such as competitiveness and differentiation.
Build a concentrated portfolio of approx. 30 stocks based on the above criteria
- Select best 30 stocks focusing on analysis of top-line growth, ROE, and other fundamental factors including: effective business strategy, management capabilities and competitive advantages relative to peers.
Background to Investing
Sell-side research providers have scaled back their coverage of Japanese stocks over the years, leaving this market under-researched and isolated in global investment terms. Nevertheless, many attractive Japanese companies have maintained outstanding competitiveness in both the global and domestic markets. Our unconstrained strategy, which concentrates on investment in stocks with sustainable high ROE and a competitive edge, aims to take full advantage of the unique opportunities available in this market.
Potential significant risks
By focusing its investments in Japan, the fund will have greater exposure to the market, political and economic risks of that country than if it was more diversified across a number of countries. Investments in emerging markets or less developed countries may be more exposed to political, economic or structural challenges than in developed countries.
To achieve long-term capital growth through investment in a concentrated, actively managed portfolio of Japanese equity securities. A benchmark agnostic, ‘best ideas’ approach which selectively invests in individual companies, focusing on strong, growing companies with sustainable characteristics, most notably return on equity (ROE).
USD 191.0 million (as at 31.01.2020)
Nomura Asset Management U.K. Ltd.
Shintaro Harada, CMA, Chief Portfolio Manager, Nomura Asset Management Co. Ltd., Tokyo.
Shintaro Harada has over 25 years of investment experience and has been managing Japanese equity portfolios for Nomura since 1993.
Equity – Japan
Ireland (Nomura Funds Ireland Plc)
Further information can be found on the website of Nomura Asset Management U.K. Ltd. (You will leave the website of Nomura Asset Management Europe KVG mbH and will switch to the website of Nomura Asset Management U.K. Ltd.)
Prospectus Nomura Funds Ireland plc: as per 02. April 2019
Share classes without a KIID are not yet active but could be launched on request within a short period of time.
As per 31. January 2020
A complete overview of all available share classes of the fund as well as further information can be found on the website of Nomura Asset Management U.K. Ltd. (You will leave the website of Nomura Asset Management Europe KVG mbH and will switch to the website of Nomura Asset Management U.K. Ltd.)