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Nomura Funds Ireland – Japan Sustainable Equity Growth Fund

Investment Style

Investing in sustainable, quality companies that generate strong cashflow returns with growth potential, while also delivering measurable, positive societal outcomes.

  • High Conviction: approx. 40 stocks, no sector limits/targets.
  • In house ESG Analysis and Scoring as well as UN SDGs evaluation embedded throughout the investment process.
  • Active Share: 75-90%

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 have the potential to make a positive impact on the environment and/or society by solving sustainability issues, while at the same time increasing their corporate value over the long term.
  • 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.

Background on investing 

  • Japanese companies have made significant progress in modernizing their governance structures, adopting more environmental sustainable practices and addressing longstanding social issues.
  • Corporate mindset has also shifted, as companies increasingly prioritize sustainable earnings over the pursuit of market share. A shift from short term financial profits to sustainable economic returns on capital is in progress.
  • Our commitment to ESG integration, backed by our local presence in the Japanese markets built over 60 years.
  • On-the-ground team of 30 research professionals conducting rigorous analysis and impact assessments.
  • PRI Assessment Report 2020: Nomura AM received A+ in all categories for which we made the report, including `Status of integration of responsible investments in listed stocks` and `Proxy Voting`.
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 2.9 million (as at 30.09.2021)

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

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.

 

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Important Disclosures 

 

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Private Investor