Equity market tends to focus on "future possibilities" rather than present value based on fundamental facts. However, while market attention goes to one side and giving growth stocks with higher premium, they pay less attention to companies with relatively less attractive, such as low growth, non core, unprofitable companies. This affects pricing as negaive premiums reflecting negative images, occationally brings discounted pricing contrary to the fundamental facts. However, if such companies’ 'facts' to be gradually acknowleded by the market, stock prices may appreciate not only due to the "adjustment of the discount", but also as a result of the "acquisition of a premium". Some "discounted companies" are exposed to a skeptical market due to the companies’ past performance and the perception shared by the market; stock prices usually do not reflect such companies’ recovery immediately. They are priced at a "discount" reflecting investors' "semi-confidence".

AXIA believes the discount shall be created with the image given by the market. Focusing on the fundamental facts, also not to rely too much on future possibilities, is effective approach for long term investors.

Stock valuation indices such as P/E, P/B, and dividend yields, are indicators that are being calculated. Yet, none of these indices takes into account factors such as the reasons for the discount, the past trend, or the future development.

In order to create an investment universe and to bring about appropriate decisions, AXIA considers companies’ adequate P/E and P/B for the evaluation, based on the given facts. The "Value Score" measurement process was developed to convert considerable amount of information into objective numerical data. All stocks are analyzed and scored with each of the three approaches, and a total score is calculated to create the Value Stock Universe.

After graduating Yokohama National University, he dedicated his entire working career for T&D Asset Management and its predecessors. Joined Dai-ichi Investment Trust in 1986 as Japanese equity analyst, became fund manager by 1988. In his 22 years of investment experiences, he managed Japanese growth equity, global active balanced funds including Japanese equity, fixed income, foreign fixed income, and currencies.

Mr. Kinugawa became fund manager of Active Value Open "AXIA" in September 1999, then he perfected and adapted with the "AXIA Strategy" since January 2000.