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Today's Pick

Mar 27, 2019
byAkane Hashimoto

Japanese Bank's Hunger for CLOs Shows No Signs of Abating"Demand comes from regulatory reasons. Subordinated tranches can be a potential investment opportunity for unregulated investors." Japan Watchdog Accuses Citigroup Unit of Manipulating Bonds Futures Market"Again, Citigroup. May be worthwhile checling who is behind."

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Recent News

J-REIT:Notice Concerning Acquisition of Domestic Real Estate-Hankyu Hanshin REIT

Mar 26, 2019
byInvestment in Japan

J-REIT>Hankyu Hanshin REIT' announcementHankyu Hanshin REIT, Inc. (hereafter “Hankyu Hanshin REIT”) hereby notifies that Hankyu Hanshin REIT Asset Management, Inc., the asset management company that Hankyu Hanshin REIT has selected to manage its assets (hereafter the “Asset Management Company”), today decided to make the following acquisition.

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Noriyuki Morimoto's Blog

Is TEPCO Holdings worth investing in?

Mar 25, 2019
byNoriyuki Morimoto

Stocks can be objects of speculation, and also be assets to invest in. Then, what is the requirement for a stock to be eligible for investment? The answer is that its uncertainty can be measured in a reasonable manner. Uncertainty is inevitable for any business, but when that uncertainty cannot be rationally measured, the stock price can easily fluctuate due to arbitrary expectations: it may be interesting for speculation, but hardly becomes an asset to invest in. For reasonable measurement to be possible, uncertainty must be manageable. If you can manage it, you are obviously able to measure it. If it cannot be measured, some management method must be devised under the that premise. The risk of an accident at a nuclear power plant is not completely excluded under the highest degree of safety standards, and it is impossible to estimate the amount of damage resulting from an accident. Therefore, it is a typical case of unmeasurable uncertainty. That is why the ultimate responsibility of the government has to be stated by law. So long as the law is functioning, unmeasurable uncertainty is placed under manageability, and TEPCO Holdings could become worthy of investment. But is TEPCO Holdings still eligible for investment? Under the political uncertainty around the future of nuclear policies, it seems that the uncertainty of nuclear power projects has lost its manageability. TEPCO Holdings is a listed company: the Tokyo Stock Exchange is not an organization that determines the value of the company’s shares, but it simply had to allow listing to continue as long as formal standards were met. Being listed means it is automatically included in the calculation of the Tokyo Stock Price Index. Once included in the index, it is included in the portfolio for index investing. This shows that TEPCO Holdings rightly stands as an asset to invest in...But isn’t this a faulty logic?

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Recent News

Private Equity in Japan : Agreement of sale of equity stake in KEC Corporation

Mar 22, 2019
byInvestment in Japan

Private Equity in Japan>TOKIO MARINE CAPITAL's announcementTOKIO MARINE CAPITAL CO., LTD. (“TMC”) announced that TMCAP2011 limited partnership, which is an investment fund managed by TMC, reached an agreement with Hitachi Industrial Equipment Systems Co., Ltd. to sell its entire stake in KEC Corporation.

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Recent News

Today's Pick

Mar 20, 2019
byAkane Hashimoto

These Risky U.S. Loans Are Adored by Japanese Investors"It is very important to select actively managed portfolios. "Japanese Financial Services Agency issues guidance on capital requirements for securitisation investors"JFSA is encouraging institutional investors to set clear selection process and risk management policies. "Japanese Risk Retention: JFSA Favors Diligence Over Disruption Hundreds of Firms May Be Demoted in Tokyo Exchange Shakeup"It should be a social responsibility to maintain a qualified pool of companies." Japan and U.S. join rest of the world in grounding Boeing 737 Max jets as crash data raise concerns"Hopefully technical issues be clarified soon." Recent price rises fail to boost Japan inflation"Japan is matured enough that price increase would only result in less consumption…" Not just a Japanese disease: Mizuho’s woes afflict the world"Warning to all banks running business in a flat yield curve environment." Policy (BOJ)Japan to Tackle Global Financial Regulation Disharmony at G-20 Governance/Stewardship/FiduciaryNissan faces governance row over board chairmanship BusinessSoftBank, Other Investors in Talks to Invest $1 Billion in Uber’s Self-Driving Unit 

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Recent News

Private Equity in Japan: Sunrise Capital Ⅲ has signed an agreement to acquire BLOOM Group

Mar 19, 2019
byInvestment in Japan

Private Equity in Japan>CLSA Capital Partners' announcementTokyo – Monday, 18 March 2019 – CLSA Capital Partners, the asset management business of CLSA, is pleased to announce that Sunrise Capital III (“Sunrise III”) has signed an agreement to acquire BLOOM Ltd. and its affiliated companies (“BLOOM Group” or “Company”), a leading designer, manufacturer and wholesaler of amusement-related products, toys and daily goods in Japan.  A fund of CLSA Capital Partners, Sunrise III invests in established, mid-cap companies with strong growth potential in Japan. 

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Recent News

Private Equity in Japan: Notice of Agreement to Transfer Shares of AYUMI Pharmaceutical Corporation -Unison Capital, Inc.

Mar 18, 2019
byInvestment in Japan

Private Equity in Japan>Unison Capital's announcementWe are pleased to announce that Unison Capital Partners III, L.P. and other funds (“Unison”), for which we serve as advisors, and private equity funds managed by Blackstone (NYSE: BX) have entered into a share transfer agreement (the "Agreement") with respect to the transfer of all outstanding shares of AYUMI Pharmaceutical Corporation (“AYUMI”).

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Recent News

J-REIT: Notice Concerning Acquisition of Property-Kenedix Retail REIT

Mar 13, 2019
byInvestment in Japan

J-REIT>Kenedix Retail REIT's announcement①Notice Concerning Acquisition of Property (Musashi Ranzan Distribution Center) >Kenedix Retail REIT's announcement②Notice Concerning Acquisition of Property (Yokohama Kamigo Distribution Center)

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Recent News

Today's Pick

Mar 13, 2019
byInvestment in Japan

SoftBank sets up $5 bil. Latin America fund"Softbank has been aggressively expanding investment business and will be..." BusinessNissan cuts back on more business at English plant, pulling Infiniti from Western EuropeNissan, Renault and Mitsubishi seek fresh start after Carlos Ghosn era with new joint boardToyota and JAXA plan to send rover to the moon in 2029, with space inside for four astronautsSoftBank-backed startup Uhuru considering London listingSoftBank finds more love for early-stage investingSBI aims to raise ¥100 bil. for biz succession fund for small firms EconomyJapan's household spending rises 2.0% in January, up for second monthJapan's fourth-quarter GDP upgraded, but business conditions index continues downtrend Policy (BOJ)Has monetary easing run its course? 

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Noriyuki Morimoto's Blog

Investment principles learned from Japanese antiques

Mar 11, 2019
byNoriyuki Morimoto

There is a book published in 1953 called "Secrets of Investing in Antique Art". The author's background is unknown, and it is the type of book that second-hand bookstores sell at a discard price. However, surprisingly, it is a well written book. The impressing part is its analysis of the difference between art antiques and other assets like securities as investments: every antique item is unique without a general/objective standard of price, and they "do not generate offspring (interests, dividends, rents, etc.). It is a very logical and well organized observation. Given that art antiques do not generate offspring, investment income is simply generated from increased prices. Therefore, the question is what kinds of art antiques tend to raise prices in the market. One factor is "what rich people want". According to the book, "High artistic value does not always translate to high market price: value and price do not always match." This has to be called a fundamental principle of investment. The next factor is "general perception". Naturally, the better something is known by the public, "the wider and stronger the demand," and "that demand tends to last over a longer period." Then comes "things that are regarded as necessities". Art antiques are not essential for everyday life, so they will not raise their price due to daily necessity. However, some of them have an element of necessity. For example, tools for tea ceremonies: the tea ceremony remains a way of socializing in modern life, and vintage items are preferred in its setting. It is mentioned that there is reliable demand for old tools for use in modern-day tea ceremonies. And the most interesting part in the book is its novel viewpoint on "things with a modern aspect". Even in antique art, highly popular items are those "equipped with a timeless quality that permanently embodies modernity." In essence, the book says that art antiques can be valuable investments because they are currently backed by solid demand in the society, and can be expected to remain so in the future. This theory generally holds as the basic requirement of all investment assets. In order for something to be eligible for investment, it has to be backed by breadth, strength and sustainability of demand.

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Recent News

Today's Pick

Mar 06, 2019
byAkane Hashimoto

Japanese pension funds: Slowly but surely"Should be time to review asset definitions. "Alternatives" would not help monitoring nor risk management." Mitsubishi to Acquire Aviation Finance Business of DVB BankJapan's MUFG to buy German DZ Bank's aviation finance arm"Good move. Potentially JREIT market might grow to aviation sector."  Policy (BOJ)Japan plans rule change to encourage regional bank consolidation: NikkeiMizuho Bank chief calls on BoJ to reconsider monetary easing Governance/Stewardship/FiduciaryDalton Calls for `Massive' Buybacks, Board Seat at Shinsei Bank MarketCLO Market's Japanese Buyers Face More Regulatory Scrutiny  

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Recent News

Private Equity in Japan: 500 Startups' Japan Team Starts New Fund Called Coral Capital

Mar 05, 2019
byInvestment in Japan

Private Equity in Japan>The 500 Startups Japan Team Launches Coral Capital500 Startups’ Japan team is breaking off to start a new early-stage investment firm called Coral Capital.

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