Equity Strategies

Japan Growth Equity

The Japan Growth Equity strategy aims to generate out performance by investing in companies which deliver greater than market average earnings growth, over the medium to long-term.

Investment Philosophy

The investment team aims to identify companies with higher potential and invests in them whilst such potential is not fully recognised by the market. The basic premise of this strategy is that when Earnings Per Share (EPS) is growing strongly, the stock return will exceed the index return.
The investment team seeks companies with reliable growth drivers, selling at reasonable valuations, which they believe will deliver superior returns on a sustained basis.

Key Characteristics

  • Opportunistically invests across all market caps
  • Sector weights are a residual of bottom-up stock selection
  • 1-year investment time horizon
  • Stock selection is the primary source of returns
  • Approximately 100 name stock portfolio

Investment Criteria

The Japan Growth Equity strategy has firm criteria for selecting growth companies.

Criteria for Selecting Growth Companies

    • Will operating profit reach a historical high over the medium-term?
    • Will earnings growth steadily outperform the market average over the medium-term?
    • Will earnings growth momentum accelerate in the coming year?
    • The portfolio managers perform stock selection with heavy emphasis on these criteria.

The foundation of this approach is based on the research conducted by Nikko AM's sector research analysts, who are assigned a Research Universe comprised of the top 1,000 stocks (by market capitalisation) in the Japanese equity market.

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 (www.nikkoam.com.sg) 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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