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Nomura Funds Ireland – Japan Small Cap Equity Fund

Overview

The Nomura Japan Small Cap Equity Fund aims to identify undervalued but highly competitive companies for long-term outperformance through rigorous, bottom-up fundamental 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

  • 100% 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 the competitiveness of companies and assessing long-term sustainable growth, high ROIC(return on invested capital), and ability to maintain or improve ROE(Return on Equity) through appropriate capital policies

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 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 14.9 million (as at 30.09.2021)

Investment Company

Nomura Asset Management U.K. Ltd.

Lead Fund Manager

Makoto Ito, CMA,

Senior Portfolio Manager

Launch Date

07.02.2020

Base Currency

JPY

Universe Sector

Morningstar Universe: EAA Fund Japan Small/Mid-Cap Equity

IA: Japan

Benchmark

Russell/Nomura Small Cap Index (dividends reinvested)

Domicile

Ireland (Nomura Funds Ireland Plc)

Lead ISINs

F JPY: IE00BJCW7L63

For additional share class information, please contact us.

 

Makoto Ito, CMA, Senior Portfolio Manager

Mr. Makoto Ito is the lead portfolio manager and has more than 15 years of investment and research experience. He is also the lead manager of one of Nomura`s flagship Japanese equity funds, the Nomura Japan Value Open Strategy, since April 2015. Mr. Ito started managing Japanese Equities since 2008. Previous experience include managing Asian equities and an equity research covering the financial sector in Japan. He was appointed as Senior Portfolio Manager in 2015.

Fund Monthly Factsheet Fund Snapshot
Class F JPY

For a full list of available share class documents including KIIDs, please visit our fund documents page.

The lead share class fund literature is shown first in the above list. If any literature is not available in the above list for the share class you are invested in/interested in, please contact NAMupdates@nomura-asset.eu

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Important Disclosures 

 

Institutional Investor

Financial Adviser

Private Investor