insights 17 dec 2021

New Zealand Equity Monthly – November 2021

COP26 included a pledge by New Zealand and 100 other countries to achieve 30% cuts in methane emissions by 2030. Similar progress is being seen in the area of corporate disclosure as New Zealand is set to have its first climate-related disclosure standard by the end of next year.

insights 15 dec 2021

2022 Japan Equity Outlook: ESG to bring Japan to the fore

ESG initiatives are expected to become ever more important for companies and investors around the world in 2022. We expect many Japanese companies to come to the fore amid this global shift towards ESG, with enhancements in ESG disclosures shedding light on their value creation opportunities amid the current drive towards decarbonisation.

insights 15 dec 2021

2022 Singapore Equity Outlook: Focusing on sustainable growth

The Singapore economy is on a road to recovery. Although the economy has already rebounded sharply in 2021, we expect the recovery theme to remain intact and continue supporting the Singapore economy in 2022. We see a broadening of growth within Singapore’s key economic engines in 2022, with a sharper recovery expected in the services sector as the economy reopens.

insights 01 dec 2021

Japan’s “Show Me the Money” Corporate Governance: 3Q Record High

The just released 3Q CY21 data on aggregate corporate profits in Japan was very positive, as although for the single quarter, the overall corporate recurring pre-tax profit margin declined from the 2Q, as it does routinely for this non-seasonally adjusted data.

insights 01 dec 2021

Future Quality Insights - December 2021 - A trip to Lisbon

Just a few weeks ago I attended my first in-person conference since 2019. Over 40,000 people descended upon Lisbon for Web Summit, one of the world’s largest technology conferences. The event brings together CEO’s and founders of established firms together with start-ups and policymakers to discuss and pitch ideas over the course of a week.

insights 10 nov 2021

Japan Value Insights: Medical technology key to value and addressing inefficiencies

Japan’s rapidly advancing medical technology is viewed as a way to address the healthcare sector’s inefficiencies while at the same time offering potential value opportunities.

insights 22 oct 2021

Global Equity Quarterly Q3 2021

Our philosophy is centred on the search for “Future Quality” in a company. Future Quality companies are those that we believe will attain and sustain high returns on investment. ESG considerations are integral to Future Quality investing as good companies make for good investment

news 28 Oct 2021

Nikko AM TCFD 2020 Report

In our third annual report, we analyse the impact of climate change on our operating results and financial positions in the 2020 calendar year, focusing on the Task Force on Climate-Related Financial Disclosures (TCFD)’s recommendations with respect to governance, strategy, risk management and metrics and targets.

news 6 Oct 2021

Nikko AM Revamps Environmental Policy

Nikko Asset Management (Nikko AM) has just revamped its Environmental Policy, with a framework aligning all of the firm’s offices around the world in how to consider environmental factors when conducting business. The policy also sets a firm target of a 40% reduction in greenhouse gas emissions, and commits to disclosing regular progress updates towards that target.

insights 28 sep 2021

Funding high-impact climate action with green bonds

The past five years have been the hottest since records began. In the decade to 2020, global surface temperatures were 1.09C higher compared to the pre-industrial era (1850–1900)1. The Intergovernmental Panel on Climate Change (IPCC) warns that stabilising global warming below the 1.5C level is critical to avoiding the most extreme impacts on ecosystems and human health.

insights 06 sep 2021

Japan Value Insights

Japan’s drive to embrace hydrogen as an alternative energy source is an opportunity to identify hidden value in firms that are willing to tackle and resolve social issues.

insights 26 aug 2021

Future Quality Insights - August 2021

The Tokyo summer Olympics have been a welcome distraction over the last few weeks and well done to Japan for hosting the games so successfully in the current environment. In particular it is inspiring to see the years of preparation and planning being showcased by the top competitors in their respective sports.

insights 07 June 2021

Future Quality Insights - June 2021

Who hasn’t sat at home, shouting at the TV as a contestant on a quiz show offers up a hopelessly wrong answer? Incredulity, frustration and a sense of helplessness are all common emotions in that situation. At least you normally get a good laugh at the end of it.

insights 13 May 2021

Net zero carbon: Is it all just hot air?

"Nowadays people know the price of everything and the value of nothing", quipped Oscar Wilde. He wasn’t far off the truth when it comes to the cost of progress. Certainly, humanity has progressed substantially in the post-industrial era. But this has come at the cost of the environment. Economic development and wealth creation arising from industrialisation resulted in a rapid increase in energy usage, and a concomitant increase in greenhouse gas (GHG) emissions.

insights 13 Apr 2021

Palm oil investing through an ESG lens

Does investing in palm oil companies pose a controversy or present an opportunity? Here is a deep-dive analysis of the palm oil sector and the material ESG issues facing it. All in all, we believe that positive ESG changes represent a strong opportunity for palm oil companies, and we look for candidates that strive towards sustainability goals and exceed their ESG targets.

news 8 Mar 2021

Nikko AM Group targets 30% women in managerial positions by 2030

To mark International Women’s Day on 8 March, we announced we have set a target that women hold 30% of all managerial roles across the group, globally by 2030. This target, termed “30 by 2030” will accelerate women’s career advancement, and is key in guiding the firm’s initiatives to achieve greater gender diversity in a transparent way.

insights 3 Mar 2021

Future Quality Insights: March 2021

The introduction of the EU’s Sustainable Finance Disclosure Regulation in March 2021 will see significant changes to the way asset management is conducted. It includes new disclosure requirements for investment firms to address environmental, social and governance (ESG) concerns and we welcome it with open arms.

insights 4 Jan 2021

Beyond the pandemic: Identifying sources of alpha in Japan

The global markets surged in 2020 despite the COVID-19 pandemic. While we expect the liquidity-driven rise to continue for a while, we should be prepared for the tide to eventually turn. We identify Japanese industries, notably “Delta ESG” stocks, that could become sources of alpha in the post-pandemic world.

insights 16 Dec 2020

Future Quality Insights: December 2020

Another quarter goes by and we are still (in the United Kingdom anyway) limited in our ability to travel and congregate in offices. In my spare time, I often end up searching vainly for fresh and interesting new content, only to revert to watching stalwarts such as the Bourne film series.

insights 1 Dec 2020

Efficiency of Japanese corporate investment in human capital and shareholder value

In Japan, a country that struggles with an ageing and shrinking population, it is important from an economic and social perspective to improve labour productivity by utilising human capital more efficiently. Click to read an adaptation of Yasushi Ishikawa and Kyoji Hasegawa’s award-winning paper on this topic.

news 2 Nov 2020

Annual TCFD report

In our second annual report, we analyse the impact of climate change on our operating results and financial positions in the 2019 calendar year, focusing on the Task Force on Climate-Related Financial Disclosures (TCFD)’s recommendations with respect to governance, strategy and risk management.

insights 2 Nov 2020

Biden's Most Critical Investment

At the time of writing, Democrat presidential candidate Joe Biden leads the polls by 10 percentage points and will likely be elected President of The United States on 3 November 2020. The potential for a Democrat “Blue Wave” with control of both houses easing the passage of legislation also seems possible.

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