Sustainability Oriented Investment

Today, I would like to introduce you an investment product available in Japan. Those who have at least the tax status, better to consider the ITF, Investment Trust Fund, “Yui”, which is issued by Kamakura ITF. https://www.kamakuraim.jp/

What I found this to be interesting are as follows.

1) Investment philosophy

2) Sustainability oriented

3) Moderate return seeker

1) Investment philosophy

I feel that their fundamental value is “Investing to good companies.” So, what is, by their definition, a good company. On their web site and sales forces tell us, they are the companies that we Japanese want to have, continue and grow, given the economic growth in Japan. Thus, regardless of the actual financial figures, products, or even recognition as their brands, unless Kamakura identifies the company as “GOOD”, Kamakura never invests into famous listed company.

2) Sustainability oriented

What Kamakura values most is the contribution of a company to the society that they belong to. For instance, Kayac.com is an IT company, who has provided jobs to so-called NEET young adults. NEET means “Not in Education, Employment, or Training”. They basically, graduated from school but have not worked for certain company due to communication issues.

On behalf of investors, Kamakura has been supporting this company as an asset manager.

3) Moderate return seeker

The management team at Kamakura is consisted of professionals with financial especially trading/ investment background. They said the their target is the return which is the half of stock market price in Japan. The stock market risk seems to be around 20%, so they consider around 10 percent looks moderate return as well as acceptable risks.

The companies which they have been investing to are as follows.

a) Kameda Seika, Topix 2220

https://www.kamedaseika.co.jp/cs/?p=en.enIndex

They are one of top Japanese rice snack producers and manufactures. Looks like Nabisco in Japan. According to Kamakura, their corporate philosophy is sublime and one of the long lasting companies in Japan.

b) Euglena

http://www.euglena.jp/

Established in 2005.

Developing business with “Sustainability First” as the corporate philosophy. It is engaged in the healthcare business, which manufactures and sells foods and cosmetics using “Euglena (Japanese name: Euglena)”, the biofuel business, and the social business. Succeeded in edible outdoor mass culture of “Euglena” for the first time in the world. The head office is in Tokyo.

c) Surara net

https://surala.jp/

Established in 2008. The head office is in Chiyoda-ku, Tokyo. Listed on TSE Mothers. Their corporate philosophy is to “transform education and energize children “, and their mission is to eradicate educational disparities. Kamakura put high value on their corporate mission.

Most of the cram schools that have introduced “Surara” are not cram schools aimed at taking exams at famous schools, but cram schools attended by students for the purpose of supplementing what they learn at school.

“Surara” is equipped with various ideas and unique functions such as learning from the basics at your own pace, regardless of the progress of the school lessons, while interacting with the character like a game. Students who are not good at studying and left behind will be able to “understand and apply” what they are learning.

Through “Surara”, students can acquire academic ability, and the successful experience of “you can do it if you do your best” gives students confidence, which leads to expanding their future choices and possibilities.

In addition, the company is strengthening its home study support business for school refusal students and children with developmental disabilities and learning disabilities in Japan, and overseas, in 2015, it will provide “Surara” to the lower income families in Sri Lanka. By doin g that ,Surara can provide its system in Indonesia and India, to fill the gap in educational environment in the world.

Above three are listed companies and Kamakura also invest to the non-listed companies. For the equity analysis in Japanese market, Kamakura’s view would provide us with good insights.