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Japan Enhanced Index Equity

The Japan Enhanced Index Equity strategy aims to generate out performance over the medium to long term, using a proprietary quantitative model.
Investment Philosphy

The Japan Enhanced Index Equity strategy aims to generate out performance over the medium to long term, using a proprietary quantitative model based on three distinct components that estimate expected alpha from individual stocks.

Key Characteristics
  • Investment opportunities arise where stock prices deviate from theoretical values
  • Proprietary quantitative model
  • Opportunistically invests across all market caps
  • 3 independent sources of expected returns

It is the combination of the three components within the proprietary "N.ALPHA" model which enables the investment team to calculate the expected alpha of individual stocks accurately. The effectiveness of N.ALPHA has been verified by long-term simulations, as well as a variety of stress-tests, which may obtain stable excess returns over the medium and long-term.


Types of Long-Term Simulations & Stress-Tests

  • The Risk Premium Model estimates rises in future theoretical stock prices
  • The Mis-Pricing Model estimates the difference between theoretical and actual stock prices
  • The Behavioural Finance Model estimates stock prices based on investor behaviour
Our Investment Process

The investment process is supported by "N.SERIES", a proprietary series of investment tools used to estimate credit risk, transaction costs, risk control and performance analysis. This series enables effective portfolio construction by responding flexibly to the investment team's needs and changing markets.

Portfolios are constructed by inputting the expected alpha of individual stocks from N.ALPHA into Nikko AM's proprietary optimisation model.

Important Information

The funds mentioned are Singapore registered funds approved for sale or purchase in Singapore. By proceeding, you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information.

The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

This website may contain links to the website of certain overseas affiliates of Nikko Asset Management Asia Limited (“Nikko AM Asia”). However, providing such links should not be considered as offering or solicitation by Nikko AM Asia of any product or service of its affiliates to any person.

This website is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko AM Asia.

Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Funds, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website ( before deciding whether to invest in the Funds.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this website.

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