Reports
Building relationships with companies, actively working together to improve shareholder value.
Our portfolio of 20-30 stocks means we devote ample resources to research and engagement for every investment.
A five year horizon aligns our interests with those of management.
Discovering overlooked and under researched investment opportunities to unlock long term value.
Investing in the Japanese market for over two decades, with a dedicated team in London and Tokyo
| Capital Goods | 32.8% |
|---|---|
| Materials | 20% |
| Software and Services | 14.2% |
| Commercial and Professional Services | 10.4% |
| Foods and Staples Retailing | 5% |
| Telecommunication Services | 4.8% |
| Automobiles and Components | 4% |
| Retailing | 3% |
| Health Care Equipment and Services | 2.9% |
| Transportation | 2.3% |
| Banks | 1.4% |
| Media and Entertainment | 0.4% |
AVI Japan Opportunity Trust p.l.c is referred to as ‘AJOT’ throughout the website. AJOT’s investment managers, Asset Value Investors are referred to as ‘AVI’
IMPORTANT INFORMATION
USE OF THIS WEBSITE:
THIS WEBSITE IS NOT INTENDED TO OFFER OR TO PROMOTE THE OFFER OR SALE OF THE SHARES (THE “SHARES”) OF AVI JAPAN OPPORTUNITY TRUST PLC (THE “COMPANY”) IN THE UNITED STATES OR TO ANY “U.S. PERSONS” AS DEFINED IN REGULATION S (“US PERSONS”) UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
THE MATERIALS CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, AND MUST NOT BE MADE AVAILABLE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO US PERSONS OR INTO OR WITHIN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR IN ANY OTHER JURISDICTION WHERE, OR TO ANY OTHER PERSON TO WHOM, TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAW OR REGULATION.
The contents of this website are communicated by Asset Value Investors Limited (“AVI”), which is authorised and regulated by the UK Financial Conduct Authority, with registered number 01881101 and which has its registered office at 2 Cavendish Square, London W1G 0PU, United Kingdom.
The information contained in this website does not constitute or form a part of any offer to sell or issue, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities in the United States or in any jurisdiction in which, or to any person to whom, such an offer or solicitation would be unlawful.
Nothing in this website is to be taken as investment or tax advice. If you are unclear about any of the information on this website or its suitability for you, you must contact your financial or tax adviser, or an independent financial or tax adviser before making any investment or financial decisions.
The Company has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act“), and as such holders of the Shares are not and will not be entitled to the benefits of the Investment Company Act. The Shares have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, delivered, assigned or otherwise transferred, directly or indirectly, into or within the United States or to, or for the account or benefit of, any US Persons. There has been and will be no public offer of the Shares in the United States. The offer and sale of the Shares have not been and will not be registered under the applicable securities laws of Australia, Canada, Japan or South Africa. Potential users of the information contained in this website are requested to inform themselves about and to observe all applicable restrictions.
General risk warning: All investment is subject to risk. The value of the Shares may go down as well as go up. Past performance is no guarantee of future returns and there is no guarantee that the market price of the Shares will fully reflect their underlying net asset value. There is also no guarantee that the Company’s investment objective will be achieved.
The information contained in this website may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement. Actual results may differ materially from those expressed or implied by any forward-looking statement. You should not place undue reliance on any forward-looking statement.
Neither the Company nor AVI undertakes any obligation to update or revise any information in this website, including without limitation, any forward-looking statements, whether as a result of new information, future events or otherwise, and neither the Company nor AVI will confirm the accuracy or completeness of any information at any given time.
This website may contain links to third party websites. These links are provided for your information and convenience only, and do not amount to a recommendation or endorsement by the Company or AVI of that third party or its website. Neither the Company nor AVI has any control over the content of any third party website and neither the Company nor AVI has verified the accuracy of any content on any third party website. Accordingly, neither the Company nor AVI is liable for the content or availability (or lack of availability) of such third party websites.
This website is provided for your use “as is” without any warranties (whether express or implied) of any kind including, but not limited to, the warranty of non-infringement of third party rights or freedom from computer virus. As a result, neither the Company nor AVI accepts any ongoing obligation or responsibility in respect of any errors, omissions, interruptions or delays in service which may occur. Internet is not a secure medium of communication unless the data being sent is encrypted. Neither the Company nor AVI accepts any responsibility for unauthorised access by a third party or the corruption of data sent to it.
By continuing to use this website, you agree to the exclusion by the Company and AVI, to the extent permitted by applicable law and regulation, of any and all liability for any direct, indirect, punitive, consequential, incidental, special or other damages, or any loss of profits, revenue or data arising out of or relating to your use of and our provision of this website and its content. The Company may change these terms and conditions from time to time and any such changes will be posted on this website. Your access to this website is governed by the version of these terms and conditions then in force.
By clicking “Agree” below, you represent, warrant, undertake and agree that (1) you have read, understood and agree to be bound by the terms and conditions and other information set out herein, (2) you are permitted under applicable laws and regulations to receive the information contained in this website, (3) you are located outside the United States and are not a US Person, and (4) you will not transmit or otherwise send any information contained in this website to any persons in the United States or who are US Persons or to any publications with a general circulation in the United States. If you cannot so represent, warrant, undertake and agree, you must click the button labelled “Decline” or otherwise exit this website.
Manager's Comment - April
AJOT’s NAV fell by -5.1% over the month, suffering from a -2.0% decline in the Yen against the Pound, as well as weak stock markets. With little of our gearing capacity being utilised, we have been taking advantage of market weakness to add to one existing holding and to build three relatively new positions. Falling share prices have unearthed a number of investment opportunities that we are actively researching and we expect to build new positions in the coming months.
Manager's Comment - March
Despite the turbulent environment, and abhorrent conflict in Ukraine, AJOT’s NAV fell only -4.1%, primarily from a -2.4% weakening of the Yen, while the MSCI Japan Small Cap Index fell -4.5%. The first quarter of 2022 saw a sharp rotation out of growth stocks, as rising interest rates exposed stretched valuations, which was a relative boon for AJOT with only modest exposure to growth companies.
Manager's Comment - February
AJOT’s NAV increased by +2.1% over the month, benefitting from continued earnings growth and a more supportive environment for domestically focused small-cap companies. While there are no positive takeaways from the abhorrent conflict in Ukraine, from an economic standpoint the impact on Japan should be limited, mainly felt through higher commodity prices. To the extent that this leads to moderate inflation, it might prove helpful in meeting the Bank of Japan’s so far elusive 2% inflation goal.
Manager's Comment - January
In a volatile month for markets, AJOT’s NAV fell by -7.3%. In such environments, we are used to seeing share price changes driven not by fundamentals but more by sentiment. We remain encouraged by our companies’ operational performance, valuations that remain cheap and the continued success with our engagement.
Manager's Comment - December
Over the final quarter of 2021, AJOT’s NAV returned a respectable +1.5%, despite a -3.4% weakening in the Yen, and our benchmark, the MSCI Japan Small Cap Index, falling -8.2%. That takes AJOT’s 2021 NAV return to +10.0%, vs -1.4% for the MSCI Japan Small Cap Index and since inception (Oct-18) +26.9% vs +9.7%.
Manager's Comment - November
AJOT’s NAV increased by +2.1% over the month while the MSCI Japan Small Cap Index fell -2.6%, both figures aided by a +4.0% rise in the Yen vs. Sterling. The EV/EBIT of the portfolio was unchanged at 5.3x while our estimated discount to intrinsic value widened from 41.5% to 43.2%.
Manager's Comment - October
AVI Japan Opportunity Trust (AJOT)’s NAV fell -3.7% over the month, driven by a -3.5% fall in the Yen. King (+6bps) and Aichi (+3bps) were the largest contributors while DTS (-48bps) and Daibiru (-39bps) the largest detractors, although their detraction was more a function of currency with their share prices falling by a modest -4.4% and -2.0% respectively.
Manager's Comment - September
It was a buoyant quarter for the Japanese stock market: AJOT’s NAV grew +7.9% and the MSCI Japan Small Cap Index returned +6.0%, outperforming the MSCI World Index which returned +1.4%, (all in GBP). At the start of September, Japan’s prime minister Yoshihide Suga resigned amidst dangerously low approval ratings. His lack of charisma and English-speaking ability made him unpopular with overseas investors and his resignation stoked excitement for a more likable replacement. Unfortunately, this was short-lived as favourite candidate Taro Kono, who latterly headed the hugely successful vaccination effort, lost to Fumio Kishida, who the LDP members favoured as a more predictable, conservative leader.
Manager's Comment - August
It was a good month for performance, with a NAV return of 5.5%, aided modestly by a 0.9% strengthening of the Yen. Over the month our companies finished reporting results for the quarter ending June 2021. On a trailing twelve-month basis, profits are now +6% above where they were pre-COVID, while those of the MSCI Japan Small Cap index are -4% lower. Profits for the last quarter alone grew +53% YoY, albeit with an easy comparison – solidifying the strong recovery.
Manager's Comment - July
Over the month AJOT’s NAV fell slightly (-1.4%), driven by Digital Garage and SoftBank Group which detracted 60bps and 31bps respectively. Digital Garage suffered as its 20% stake in listed kakaku.com fell -11% on continued social restrictions and concerns regarding lower restaurant consumption.