Our Japan FVMR investment universe covers non-financial companies listed in the Japanese Stock Exchange
The five-year backtesting period shows the ASIR China A FVMR Model portfolio generated an annualized annual return of 23.8% versus the ASIR Benchmark’s 17.5%. The backtesting benchmark equally weights the largest and most liquid non-financial companies listed in China, also called “China A-shares.” On average the universe has consisted of 900 companies each year over the past ten years.
We started to publish our ASIR China A FVMR Model portfolio on January 27th, 2016, and the charts and tables on this page show the return as of January 9th, 2018. Since publishing, the ASIR China A FVMR Model portfolio has returned 30.8% p.a. versus the CSI 300 Index at 22.7% p.a. Note that the CSI 300 benchmark includes financial companies, while the ASIR China A FVMR Model portfolio does not include any financial companies.
Examples of previously held positions
Shiseido Co., Ltd.
Cheap on a PE basis, cheap on a gross profit basis, and low correlation with Western stock markets relative to its sector.
Shiseido Co., Ltd. is one of the top cosmetics companies operating in 120 countries and regions. Shiseido Co., Ltd. has more than 100 brands across cosmetic, fragrance, personal care, professional categories and skin care. Shiseido Co., Ltd. was founded in 1872 and is one of the oldest Japanses cosmetics companies in the world, they follow traditional Japanese values that have been adapted to the global market.
Round One Corp
Earnings on an upcycle trend and good capability of funding growth internally relative to its sector.
Round One Corp. was founded in Japan in 1980, and builds multi-activity entertainment complexes. The company's entertainment complexes provide arcade games, billiards, bowling, food and drinks, and various other games that appeal to clientele ranging from kids to adults. Round One Corp has 113 stores which generate $US 890 million in sales annually. The company expanded overseas in 2010 to the U.S., and has opened 19 stores in 2018 alone.
Low correlation with Western stock markets, good price momentum, and strong long-term sales growth relative to its sector.
En-Japan Inc. is a service provider for job seekers and hiring organizations founded in 2000 with headquarters in Tokyo. The company maintains six websites for recruitment and one website for management and HR professionals. The company's focus is on employee success and performance improvement of organizations. En-Japan Inc. uses what they refer to as the 3E method, Employment Education and Evaluation, to achieve this goal.