Nikko Asset Management is one of Asia’s largest asset managers, with 224.0bn USD* under management, providing high-conviction, active fund management across a range of Equity, Fixed Income and Multi-Asset strategies. In addition, our complementary range of passive strategies covers more than 20 indices and includes some of Asia’s largest exchange-traded funds (ETFs).
In the pursuit of excellence, we approach everything we do with an entrepreneurial mindset. This enables us to think differently, transforming intelligent insights into innovative, relevant investment opportunities for our clients. Leveraging our unique combination of a global perspective complemented by our Asian DNA, we aspire to create sophisticated and diverse solutions that set new standards in the asset management industry.
Investment Philosophy
The Japan Active Value Equity Strategy employs a fundamental, bottom up approach with a value style bias. The strategy invests in Japanese listed companies across all sectors and market capitalizations. The strategy’s investment philosophy is based on the belief that higher returns can be achieved by identifying undervalued companies with the potential to drastically turn their current situation around. Research is focused on companies that are likely to exhibit a recovery in earnings, sustainable growth, or undergo a drastic change in financial policy in the future. These companies are likely to witness substantial changes in return on equity (ROE).
Focus on catalysts
The strategy places emphasis on the identification of catalysts. When investing in undervalued stocks, the investment team avoids falling into value traps by looking for companies with catalysts that could move their stock higher.
Capturing opportunities in the mid to small-cap segment
While the strategy is all-cap, the portfolio managers have an additional focus to capture opportunities in the mid to small cap segment overlooked by the market. The Japanese equity market has a wealth of opportunities in this space, as demonstrated in the fact that about 42% of TOPIX companies have no sell-side analyst coverage. Many stocks in Japan remain cheap because they are under-researched and not enough information is available for investors.
Established expertise backed by robust research platform
The lead Portfolio Manager, Yoshihide Itagaki, has over 26 years’ of industry experience with extensive background in value and small cap investing. He not only looks at individual stocks but also is mindful of the dominant investment style, sector and market cap segments, striving to outperform in different market environments. He is supported by Nikko AM’s robust equity research platform. The centralised research effort, consisting of 14 experienced analysts, has strength across all sectors, market caps and styles and a strategist with over 30 years’ industry experience.
Website: www.nikkoam.com
Tel: +81 3 6447 6775