T&D Asset Management

Japanese T&D Insurance Group

AXIA (Value)

Investment Philosophy

We believe it is possible to efficiently capture attractive returns by investing in out-of-favor stocks.

  • Expectations for low growth / low profitability companies tend to be generally low, resulting in its shares being traded at discounts compared to the actual earning power or asset value.
  • Among “out-of-favor companies”, the strategy actively invests in companies that are beginning to show improvement in earning power as a result of restructuring of the existing business or development of new businesses.
  • We believe “out-of-favor companies” have limited risk on the downside as the weak growth and low profits of the past are discounted into the share price. In addition, we believe it is possible to capture high returns through adjustment of discount and acquisition of premium when earnings begin to improve.
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Investment Process

STEP 1 :

Out of TOPIX components (ex. financials), the Value Stock Universe (approx. 500 stocks) is constructed by combining a group of stocks selected using the proprietary screening system, the Value Score (approx. 450 stocks), with financial stocks and current holdings. In addition, we may include promising stocks discovered by analysts and fund managers to the Value Stock Universe.

STEP 2 :

Within the Value Stock Universe, large caps (mainly constituents of TOPIX 100) are selected from the perspective of risk control and sector allocation. However, we do not invest in stocks that are significantly inconsistent with our investment philosophy. On the other hand, mid-small caps (such as constituents of TOPIX Mid400 and TOPIX Small) are selected using a bottom-up approach, from stocks recommended by analysts and stocks discovered by fund managers.

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Disclaimer
  • This page is directed for professional investors only.
  • The purpose of this page is to express the general investment method of the strategy, and not intended for offering or soliciting any new subscriptions.
  • The information contained in this material is prepared based on a representative fund of the strategy.
  • All data used herein are that of the past and do not guarantee future returns.
  • Although the information used on this page has been obtained from public sources which are considered to be reliable and credible, T&D Asset Management does not guarantee the correctness or the credibility of such information.