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Nomura Funds Ireland – Japan Sustainable Equity Growth Fund

Investment Style

The fund seeks to invest in quality companies that can generate strong cashflow returns with growth potential as well as positive environmental and/or societal outcome.

  • High Conviction: approx. 40 stocks, no sector limits/targets.
  • Active Share: 75-90%
  • SFDR* Classification: Article 9
*EU Sustainable Finance Disclosure Regulation.

Philosophy

We believe that companies that take a proactive approach to solving environmental and/or social problems as a business can achieve long-term profit growth.

  • We are committed to helping build a sustainable society while delivering superior returns to our clients by carefully selecting such stocks based on rigorous fundamental research and decision making by the portfolio management team supported by our proprietary ESG evaluation framework.
  • The Japan Sustainable Equity Growth strategy will invest in companies that the strategy believes to contribute or will contribute to solving social or environmental problems.
  • We also focus on cashflow return on invested capital (CFROIC) to assess long term corporate value, as it is one of the most effective measures of long-term business continuity and a company’s ability to generate cash. We believe a stable cashflow is necessary for a company to respond to changes in the business environment and diversifying social needs so as to resolve social issues, which is why we prioritize CFROIC over other metrics like ROE.

Further details of the sustainability strategy are described in the tab “Sustainability-related disclosure”.

Background on investing 

  • Japanese companies have made significant progress in modernizing their governance structures, adopting more environmentally sustainable practices and addressing longstanding social issues.
  • Corporate mindset has also shifted, as companies increasingly prioritize stable earnings over the pursuit of market share. A shift from short term financial profits to stable economic returns on capital is in progress.
  • Nomura AM is committed to ESG integration, backed by our local presence in the Japanese markets built over 60 years, with a team of research professionals embedding ESG factors in their analysis.

Potential Significant Risks

The Fund’s specialist investment mandate could result in it not performing in line with funds that have a broader investment policy. By focusing its investments on 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. The Fund will hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund’s value than if it held a larger number of investments.

Investment Objective

The investment objective of the Nomura Funds Ireland – Japan Sustainable Equity Growth Fund is to invest in sustainable, quality companies generating strong cashflow returns with growth potential, while also delivering positive societal outcomes.

Fund Size

USD 2.4 million (as at 30.06.2024)

Investment Company

Nomura Asset Management U.K. Ltd.

Fund Managers

 

Jun Takahashi, CFA, CMA, Senior Portfolio Manager

Shintaro Harada, CMA, Chief Portfolio Manager

Kodai Sasaki, CMA, Portfolio Manager

Launch Date

30.07.2021

Base Currency

JPY

Universe Sector

Equity Growth – Japan

Benchmark

TOPIX

Domicile

Ireland (Nomura Funds Ireland plc)

Lead ISINs

I JPY: IE000HR2EHR7
A JPY: IE0008ENOTR1

For additional share class information, please contact us.

 

Fund Monthly Factsheet
Class A JPY
Class I JPY

For a full list of available share class documents including PRIIPs KIDs, 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 [email protected]

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Important Information

Important Information