SJG is an investment company whose aim is to deliver capital growth in excess of the Tokyo Stock Exchange’s First Section Total Return index, an objective it’s consistently delivered on over the last decade. The company runs a high-conviction portfolio of around 60 stocks across a range of sectors, taking a value-led, bottom-up approach to stock selection within thematic areas it’s identified as likely benefit from trends within the Japanese economy and beyond. The company recently announced an enhanced dividend policy with an aim of paying out 4% of NAV in each financial year.
In this podcast interview, John Hughman speaks with manager Masaki Taketsume about how corporate governance reforms have seen the Japanese market deliver strong earnings growth despite domestic economic stagnation; the country’s shift from deflation to inflation and the normalisation of Japanese monetary policy; how the company uses the deep experience of its analyst network to identify companies set to benefit from macroeconomic and shifting social dynamics within Japan; and how a growing focus on balance sheet efficiency is seeing dividends becoming a key component of investing in Japanese equities.
