Many stock markets around the world offer active managers room to generate superior returns. Among them, Japan stands out. Its equity market appears particularly inefficient. Reforms are also shaking up the once stagnant economy, creating new winners and losers in the corporate sector. That said, stockpicking still demands skill and discipline. We believe that managers will need nothing less than exceptional research and a long-term perspective to come out ahead.
Prime Minister Shinzo Abe’s reflationary policies have brought Japan’s stock market to a level of health not seen in decades. Even with the pullback earlier this year, the TOPIX has gained more than 70% in Japanese yen terms since end-2012, when ‘Abenomics’ started raising hopes for Japan’s economic recovery. Investors are rightly interested in gaining exposure to Japan. But how they do so matters.
Adopting a passive strategy may seem attractive. An exchange-traded fund, for instance, would simply track a stock market index in Japan. But why should investors settle for market returns? Japan has traditionally been a stock picker’s market, and it still is. Active managers that are adept at identifying opportunities and managing risks stand a good chance of beating the index over time. The sheer size of Japan’s stock market makes it a fertile hunting ground. It is the third-largest in the world by market capitalisation (US$5.2 trillion) and comprises more than 3,800 listed companies. But there are more reasons why conditions in Japan favour an active approach.
Japan’s stock market appears highly inefficient. Mispricing opportunities can be captured by active managers armed with superior research and insights. What drives stock market efficiency? Research coverage is key. The more analysts there are following a company, the faster information is likely to be shared. In that respect, Japan trails other developed markets like the US and UK significantly. On average, 12 analysts follow each company in the Nikkei 225 index, compared with 22 for the S&P 500 Composite Index and 21 for the FTSE 100 index.1 Research coverage tends to be even thinner for small- and mid-cap companies in Japan (see Exhibit 1). After the global financial crisis, many securities houses cut their research in this space to focus on larger companies instead. Within the electric appliances industry, for example, as many as 12 major securities houses track conglomerate Hitachi. But just two follow commercial kitchen equipment maker Hoshizaki.
Small firms, big reach
Japan’s small- and mid-cap sector is also home to numerous quality companies with leading positions in niche industries. This means there are ample opportunities for extensive bottom-up research to pay off.
Hoshizaki is a case in point. It receives little analyst coverage, yet it dominates the market for ice makers both domestically and abroad. Its energy-saving technology is a key competitive advantage as it eyes a bigger slice of the market for other appliances like refrigerators.
Likewise, few investors may have heard of Sysmex. But it is the world’s leading supplier of blood tests, ranking above healthcare giants such as Abbott. Over the years, Sysmex has gained market share with its highly efficient medical diagnostic tools and is pursuing further growth across various geographies and product lines.
Many small- and mid-cap companies trade at a discount to the market, making them seem even more attractive. But it pays to be careful. Certainly, some companies are undervalued because the market has overlooked them. But there are also those that simply have poor prospects. Active managers make a real difference when they can separate value finds from value traps.
How do I report immigration fraud?
Call the Canada Border Services Agency (CBSA) Border Watch Toll-Free Line at 1-888-502-9060 to report:
• suspicious border activity,
• a marriage of convenience,
• a person who has given false information on any immigration application or
• a person wanted on an immigration warrant.
What you tell the tip line is private.
How do I report citizenship fraud?
You can report a person who:
• pretended to live in Canada to become a citizen or
• hid information about their case.
In Canada, you may contact the Call Centre and choose the citizenship fraud tip option in our automated telephone system.
Outside Canada, contact your nearest Canadian visa office.
You can also email tips to Citizenshipemail@example.com.
How do I report Internet, E-mail or Telephone scams and fraud?
If you or someone you know may have been the target of a telephone, internet, email or other type of scam and unwittingly provided personal or financial information you should:
In Canada, contact the Royal Canadian Mounted Police Canadian Anti-Fraud Centre.
Toll-free fax: 1-888-654-9426
Outside Canada, report the scam to your local police.
How do I report a possible victim of human trafficking?
If you or someone you know is a victim, contact your local police.
To report a crime without saying who you are, call Crime Stoppers at 1-800-222-TIPS (8477). Do not take the law into your own hands or take part in any illegal activity.
Deseamos aclarar las infundadas publicaciones que han salido en ciertos medios de prensa durante los últimos días:
• Mossack Fonseca & Co. al cumplir su función de Agente Residente no es responsable del actuar comercial de las sociedades que constituye, no tenemos ningún tipo de vinculación comercial, así como tampoco tenemos la facultad de administrar o de captar fondos para ninguna de ellas; por ende, las aseveraciones relacionadas a la supuesta posesión de un apartamento en Brasil, a la constitución de compañías para actuar ilícitamente a través de ellas, y el supuesto involucramiento en delitos de lavado de dinero son absolutamente falsas y temerarias.
• La oficina del representante de Brasil ha sido requerida para suministrar información al respecto de este caso como parte de las investigaciones, información que se ha entregado y se ha colaborado en todo lo que está a nuestro alcance para aclarar este inconveniente en el menor tiempo posible. Los empleados de esta oficina, que colaboraron con dichas investigaciones se encuentran actualmente en libertad.
• No hemos prestado en el pasado ni prestamos en el presente servicios de asesoría o intermediación de ningún tipo para la compra, préstamo o financiación de bienes inmuebles ni de cualquier otro tipo, lo cual ratifica que no somos parte de este mal entendido, al cual erróneamente hemos sido vinculados.
• Es importante recalcar que Mossack Fonseca cumple y ha cumplido siempre con la verificación de debida diligencia de nuestra clientela, en estricto apego a la normativa vigente en cada país. Por esta razón, reiteramos nuestra disposición para cooperar con las autoridades cuando así nos sea requerido, disposición esta la cual de manera proactiva ya se ha hecho de su conocimiento.
• Finalmente, Mossack Fonseca no apadrina ilícitos; muy por contrario, nos complacen los avances que en materia de prevención del lavado de dinero y delitos conexos, se están verificando en nuestros países.
Director de Relaciones Públicas
MOSSACK FONSECA & CO.
(Mossack Fonseca) - On November 30, 2015, the International Monetary Fund (IMF) admitted China’s renminbi (RMB), also known as the Yuan, into the Special Drawing Rights (SDR) basket of currencies. Effective October 1, 2016 the RMB will be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the euro, the Japanese yen and the British pound. Launching the new SDR basket on October 1, 2016 will provide sufficient lead time for the Fund, its members and other SDR users to adjust to the change, according to an IMF press release.
The following weights have been established for each of the five currencies in the new SDR basket that will take effect on October 1, 2016:
• U.S. dollar 41.73 percent (compared with 41.9 percent at the 2010 Review)
• Euro 30.93 percent (compared with 37.4 percent at the 2010 Review)
• Chinese renminbi 10.92 percent
• Japanese yen 8.33 percent (compared with 9.4 percent at the 2010 Review)
• Pound sterling 8.09 percent (compared with 11.3 percent at the 2010 Review)
The SDR was created by the IMF in 1969 as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.
The SDR interest rate provides the basis for calculating the interest charged to borrowing members, and the interest paid to members for the use of their resources for regular (non-concessional) IMF loans. It is also the interest paid to members on their SDR holdings and charged on their SDR allocation. The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt instruments in the money markets of the SDR basket currencies.
Social responsibility represents an important commitment for Mossack Fonseca and our affiliates. It is also a daily reminder about our responsibility towards society.
Every year we donate to various organizations that share our values and in so doing, we stretch out Mossack Fonseca’s helping hand. Through our Corporate Social Responsibility Program, we actively and voluntarily contribute to the positive development of human beings, especially those in dire need.
Learn about our work and share in our cause. The lens of the camera captures a fair image of what we do, but the impact of our work goes far beyond. Stretching out a helping hand and coming together to enhance the lives of other people is what motivates us to do more.
Mossack Fonseca is committed to helping communities, which is why our legal experts have provided legal assistance to many organizations, including:
Rotary Club of Boquete (Panama)
The British Aid Society
Aero Club of Panama
Kennel Club Foundation
Fundacion Confederation Canofila Panama
The World Bank
Mossack Fonseca has a strong commitment to foster change where it is needed most. It is a way to remind ourselves daily about the responsibility we have towards society.
PIERO Rafael Martinez de la Hoz FOUNDATION
This organization provides emotional support to people and families who have lost loved ones through caregiving and educational programs. The Foundation seeks to create consciousness about the internal processes that take place, but are not always properly channeled, when people endure loss.
Its main purpose is to offer companionship, educate the community by disseminating information on how to confront grief, and offer training to different professionals to help them manage bereavement.
TOMATIS THERAPY AND STIMULATION FOUNDATION (fundet-TOMATIS)
The TOMATIS method owes its name to Dr. Alfred A. Tomatis, a French physician and researcher born in 1920. He was also a psychologist, speech language pathologist and a member of the French Academy of Sciences.
For him, listening was not the same as hearing because listening is affected by motivation and functional elements that depend on the will of the individual. Listening is far more than the passive act of registering sounds randomly.
In Panama, the Tomatis Therapy and Stimulation Foundation (FUNDET-TOMATIS) offers a wide range of programs for children and adults. The donations they receive enable them to offer free speech scholarships for Panamanian children who would not otherwise receive the timely and necessary help they require.
Meir Ezra - Improving this single attitude makes your days fly by. You wake up excited to work. You make the right decisions. You get more done in less time.
Improving this attitude affects everyone around you. They believe in you, trust you and want to support you.
This one attitude can change your entire life for the better.
A vital attitude for you to constantly improve is YOUR PASSION.
On a scale of 1 to 10, exactly how excited are you right now? Do you really want to succeed? Are you thrilled with your goals for today?
If not, you must generate some passion for your day, your week and your career.
To succeed you must be a leader, if only a leader of one person: you.
"In all great leaders there is a purpose and intensity which is unmistakable." — L. Ron Hubbard
Remember how former President Reagan had UNMISTAKABLE seniority when he met with Communist leaders? Have you noticed how the best speeches of politicians, ministers or actors always include high-volume intensity? The same applies to the most successful people.
"A man who merely wants to be liked will never be a leader. A broad examination of history shows clearly that men follow those they respect. Respect is a recognition of inspiration, purpose and competence and personal force or power." — L. Ron Hubbard
Passion is a self-generated tool. You have the ability to motivate yourself; to concentrate on your purpose; to get yourself excited about what you do.
Your attitude sets the mood for everyone around you. They get excited if you are excited. If you are fascinated, so are they. Recommendations you give to others that come from the heart have a greater impact.
You Can Never Be Too Passionate
Everyone can increase their purpose and intensity.
When you organize all of your activities toward one focused goal, you not only feel more joy in what you are doing, you get more accomplished.
Sometimes it helps to find things that make you passionate. For example, for which of these objectives can you generate the most passion and intensity?
- Reaching a specific goal
- Accomplishing a certain level of perfection
- Making a great deal of money
- Going back to an original purpose
- Beating a challenge
- Filling your life with as much happiness as possible
- Fulfilling a duty to yourself or your family
- Helping a great number of people
- Creating a superior reputation
- Building a highly-successful business
- Helping others achieve success
- Becoming the best at what you do
- Hitting a specific statistical target
- Earning enough money to buy something you really need or want
- Making a positive impact on society
There is nothing stronger than a leader with a firm direction and passion to get there.
Entrepreneur with years of experience across a wide range of fields and an inventor with many patents registered to his name.
Stage - Product In Development
Industry - Business Services
Location - Florida City, FL, US
Currency - SD
Website - meirezra.us
Owns multiple businesses and has consulting clients in US, Canada, Israel, Italy, Colombia, Russia, India, China, Romania, the Dominican Republic, South Africa, Germany, the Czech Republic, Turkey and others.