Japanese Active Equity /
Research Growth Strategy
Summary of Research Growth Strategy
- We are an actively managed growth fund engaged in rigorous research to uncover growth potential in the companies in our universe.
- We ｓtrive to outperform our benchmark by capturing excess return in stocks, before their potential has been noticed by the market.
<Research Growth Strategy>
| Research Growth | |
|---|---|
| Resource of Excess Return | Stock Selection 100% |
| Expected Excess Return | 3.0% |
| Tracking Error | Max 10% |
Investment Philosophy
- We don't just look for growth companies, but strive to uncover those with significant growth potential.
- The market may undervalue them, since latent growth can lie hidden beneath the surface.
- With rigorous research, we aim to capture these excess returns while the growth potential remains hidden and the shares undervalued.
Research & Evaluation
- We evaluate underlying growth potential by thoroughly analyzing company management from a long-term perspective. Moreover, our research emphasizes growth patterns, so we are able to identify its diverse stages with accuracy.
- Analysts aren't confined to making results projections. In addition to evaluating growth potential in line with our fund's strategy, they actively participate in the investment process with stock-picking recommendations. Fund managers work closely with them collecting and analyzing information. This collaboration leads to more appropriate investment decisions based on a deeper understanding of the premises and risk factors behind analysts' projections.
- We select stocks from all markets in Japan, by applying both quantitative and qualitative screening process to define the research universe, focusing on liquidity and bankruptcy risks. Our screening process aims to exclude stocks with low likelihood of investment, while maintaining a wide opportunity for investment potential. Historically, our research universe has covered 80 to 90% of the TOPIX market capitalization.
Portfolio Construction
- The portfolio is constructed based on the attractiveness of individual stocks, also taking into account trading costs. This attractiveness is largely a function of underlying growth potential, and the difference in our view from that of the market, or the Perception Gap.
- Investment in individual names is adjusted to maintain overall portfolio risk to within our target level. The maximum exposure to any single stock in the portfolio is 10%.
Competitive Advantages
- Highly experienced investment staff
- Strong research team in breadth and depth
- Unique research approach that focuses on long-term perspective
- Investment staff well-versed in our investment philosophy
- Organizational efforts to reinforce that philosophy
Awards
- *1Please refer to the website (available in Japanese only)
http://www.mercer.co.jp - *2R&I : Rating & Investment Information, Inc.
R&I Fund Award is based on the past data, and does not guarantee future performances of the fund. The Award is presented only to provide information that can be used as a reference, and it does not intend to encourage investors to buy, sell or hold the relevant fund. Furthermore, it has no relation with the qualitative information R&I provides to its clients. The Award is calculated by R&I based on information believed to be reliable, however, its accuracy and completeness are not necessarily guaranteed. The copyright and other related rights of this Award are the sole property of Rating and Investment Information, Inc. Copying, transfer, alteration, revision and/or addition of any part of or whole contents without prior written approval of R&I is strictly prohibited.
Performance data of Research Growth strategy (Jul 2007 to Mar 2012)
- Inception of Research Growth is Jun, 2004 and improvements have been made to this fund in 2007.
- This fund is adherent to Investment Performance Standards.
… The standard by which investment companies disclose investment results to existing or prospective clients, published by The Securities Analysts Association of Japan. We adopted IPS in Aug 2000.
There is no guarantee or assurance that Research Growth strategy will achieve its investment performance as stated above in the future.
The representation based on Article 37 of the Financial Instruments and Exchange Law in Japan
- Company Name:
Mizuho Trust & Banking Co., Ltd. - Registered Financial Institution Registration Number:
No.34 Director-General of the Kanto Local Finance Bureau of Ministry of Finance - Memberships:
Japan Securities Dealers Association
The Financial Futures Association of Japan
Japan Securities Investment Advisors Association - Fees and Costs:
The trust fee is calculated by multiplying the prescribed rate by the trust amount, and is collected from the asset under management. The prescribed rate is determined individually depending on the client's needs, the investment policies and the trust amount, and such rate varies from case to case. If the commission amount is shown before tax, the consumption tax will be added to it.
Transactions of commingled accounts require a prescribed amount of retention money for the trust assets (the amount of retention money varies depending on the investment strategy).
Indirect fees payable include the brokerage commission (the commission on futures transactions or option transactions is included) and its tax equivalent, a custody fee for assets in foreign currencies, a trust fee concerning the beneficiary's right of investment trust and other commissions (these commissions vary depending on the investment strategy or the amount of the assets under management due to differences in the investment situation or custody conditions).
In the case of a commingled account which includes stock lending transactions, the prescribed handling commissions will be received after lending commissions are deducted. In addition, taxes and other public charges associated with stock lending transactions and fees required for trust operations will be deducted from the assets under management or be paid by the trustors.
Also, when investing in Hedge Fund (HF) or Fund of Hedge Funds (FOHF), constitutional expenses of the fund and/or trust fees etc. (the kinds of these commissions are wide-ranging and varied depending on the investment strategy or the amount of the assets under management due to differences in the investment situation or custody conditions) may be charged. - Risk on Loss of Principal:
Since the investment strategies listed on this site mainly involve investment in financial products (e.g., equities, fixed income, currencies, real estate in investment trusts and commodities etc.), investment in these strategies involves many risks (e.g., fluctuation risk in stock prices, fluctuation risk in bond prices, fluctuation risk in yields, currency risk,credit risk, counterparty risk, country risk, risks of futures trading, fluctuation risk of the real estate market, fluctuation risk of the commodity market, risk of impossibility of collecting of lending securities and risk of re-investment of cash collateral) and thus the relevant value of the principal may be diminished.
In addition, in cases where the investment strategy involves a benchmark, the relevant value of the principal may be diminished because of fluctuations of the index price. - Other Significant Matters:
FOHF or a fund with a similar investment strategy may require a long period of time from when they receive a cancellation notice to when the investor may obtain their cash. If the amount subject to the cancellation notice accounts for a certain weight of the fund itself (i.e. over 10% of the fund), the cancellation will be limited and the investment will be converted to cash on or after the next payment date. Moreover, the times at which investments can be made in FOHF may be limited.
In general, there are no limitations on investment or cancellation except for the funds following investment strategies mentioned above. However, a certain period of time may be necessary for cancellation in some cases due to unavoidable reasons. If the cancellation amount requested accounts for a considerable percentage of the total amount of the fund, the cancellation may be divided into parts (e.g., in two or three parts) considering the trading volumes on the market. In such case, it may take around a month for completion of cancellation (cancellation will require longer periods of time where it exerts considerable influence on the fund).
