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Nomura Funds Ireland – Japan Small Cap Equity Fund

Overview

The Nomura Funds Ireland – Japan Small Cap Equity Fund aims to identify undervalued but highly competitive companies for long-term outperformance through rigorous, bottom-up analysis. With one of the largest Japan small-cap teams, we seek to identify investment opportunities by utilising our extensive research capabilities based in Tokyo.

 

Approach

  • Dedicated bottom-up approach – identify undervalued companies relative to their intrinsic value, seeking companies with strong businesses, showing signs of positive change, and expected to improve capital efficiency from changes in attitude towards shareholder returns.
  • ESG is integrated into the investment process.
  • Diversified portfolio of 100-200 holdings.
  • Focus on companies with high ROIC (return on invested capital) and the ability to maintain or increase ROE (return on equity) through an appropriate capital policy.

 

Reasons to Invest

  • Unique investment opportunity – Many smaller companies in Japan have unique competitive advantages and growth drivers with limited sensitivity to economic fluctuations, and have the potential to raise their capital efficiency by improving governance.
  • Opportunity in market inefficiency – Due to lack of investor-research and institutional ownership, Japanese small caps are generally misunderstood. Our Portfolio Managers are able to exploit these inefficiencies with their own research, visiting companies extensively.
  • Seasoned, on-the-ground team – One of the largest local internal research team of Portfolio Managers and analysts dedicated to small caps in Japan.
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. Shares of smaller companies may be more difficult to buy and sell than those of larger companies.

Investment Objective

To achieve long-term capital growth through investment in an actively managed portfolio of Equity and Equity-Related Securities of small capitalisation companies in Japan.

Fund Size

USD 12.3 million (as at 31.03.2021)

Investment Company

Nomura Asset Management U.K. Ltd.

Fund Managers

Makoto Ito, CMA, Senior Portfolio Manager, Nomura Asset Management Co. Ltd., Tokio

Launch Date

07.02.2020

Base Currency

JPY

Sector

Equity – Japan

Benchmark

Russell/Nomura Small Cap Index

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 IE00BJCW7276
Class A USD IE00BJCW7169
Class A JPY IE00BJCW7490
Class F JPY IE00BJCW7L63
Class I EUR IE00BJCW7946
Class I USD IE00BJCW7839
Class I JPY IE00BJCW7C72

Prospectus Nomura Funds Ireland plc: as per 21. May 2020

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

As per 18. January 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.)