Nomura Funds Ireland – Japan High Conviction Fund
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.
Investment Style
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.
Incorporation of ESG into the investment process
Sustainability considerations are holistically ingrained within the strategy’s quality bias and focus on sustainable ROE, which we believe is highly compatible with ESG considerations because it reflects the long-term sustainability of our investments. The strategy leverages our in-house team of ESG specialists and their proprietary ESG scoring system to identify both ESG risks and opportunities. A company’s medium- to long-term investment plan spanning at least five years, the allocation of resources including staff assignments, the sustainability of ongoing and new businesses, and the relative strength of social needs behind the business, are just a few of the items considered as part of the strategy’s ESG integration.
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.
Investment Objective |
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). |
Fund Size |
USD 223.5 million (as at 29.02.2024) |
Investment Company |
Nomura Asset Management U.K. Ltd. |
Fund Managers |
Masahiko Inudoh, |
Launch Date |
07.08.2013 |
Base Currency |
JPY |
Sector |
Equity – Japan |
Benchmark |
TOPIX |
Domicile |
Ireland (Nomura Funds Ireland plc) |
Other |
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.) |
A German version of the prospectus can be found here.
The English version of the prospectus is legally binding.
The table comprises a selection of the current available share classes (partly not yet active) for the stated Nomura Funds Ireland plc. mutual fund.
As per January 2024
(Please note that the link will access a website for contents of we assume no responsibility and to which our data protection rules do not apply.)