The Japan Essential Value strategy offers a pure exposure to the Japanese large cap equity market.
Its objective is to outperform the Topix index (with dividends reinvested) through an active management based on stock selection and fundamental analysis.
Investment ideas are pre-selected by a quantitative screening tool from a universe of c.250 large, liquid, well-covered stocks.
They are then extensively reviewed by our investment professionals, to understand their operating environment, their activity, their strategy, their business ethics, their financial situation and, ultimately, their outlook. This research is reviewed during committees, and leads to final decisions on each idea.
Based on extensive research about the Japanese market’s behavior over decades of historical data, the Japan Essential Value strategy has a Core Value (or “market-oriented with a Value bias”) investment style: the majority of the portfolio is always invested in companies that can be deemed undervalued, but the proportions may vary with the backdrop.
