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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 528.4 million (as at 31.05.2022)

Investment Company

Nomura Asset Management U.K. Ltd.

Fund Managers

shintaro 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.

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.)

Fund ISIN Annual
Report
Semi-annual
Report
Fact
Sheet
Sales
Prospectus
KIID
U.K. / English
Class A EUR IE00BBT38246
Class A EUR Hdg IE00BYZ5F684
Class A JPY IE00BBT38139
Class AD EUR IE00BG84ZX36
Class AD EUR Hedged IE00BG84ZZ59
Class AD JPY IE00BG84ZW29
Class I EUR IE00BBT38683
Class I EUR Hdg IE00BYZ5FB34
Class I JPY IE00BBT38576
Class ID EUR IE00BG869F90
Class ID EUR Hedged IE00BG869H15
Class ID JPY IE00BG850423

Prospectus Nomura Funds Ireland plc: as per 4. November 2021

A German version of the prospectus can be found here.

The English version of the prospectus is legally binding.

Share classes without a KIID are not yet active but could be launched on request within a short period of time.

As per 01. December 2021

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.)