Thornbridge Nissay Japan Contrarian Value Equity Fund
Nissay Asset Management (NAM) supports the Thornbridge Nissay Japan Contrarian Value Equity Fund, with Eizo Tomimura as the Investment Advisor. NAM believes focusing on Cash Flow Return on Investment (CFROI), to evaluate future changes in earnings quality, enables it to exploit inefficiencies in the Japanese market and avoid value traps. This is possible given the market’s over-reliance on the past (using traditional valuation metrics such as P/E, PB), whereas CFROI, which incorporates ESG factors, places emphasis on the future at a time when significant change is occurring in the Japanese market. NAM’s long-term investment horizon, and focus on fundamentals, gives it the ability to look through quarterly earnings results unlike many others. Time arbitrage is possible in the Japanese equity market given the short-term and price insensitive nature of many market participants (e.g. retail investors, ETFs).