An investor understandably expects -a superior
return while limiting risks. To accomplish this mission, a clear definition of
a strategy and rationale for this strategy is necessary.
Rigid government regulations and multi-layer distribution channels are softening
as the "westernization" of Japan drives a fundamental changes. The "old
order" of a manufacturing society is giving way to the "new order" of
a service-oriented society.
Consequently, an unusual investment opportunity exists to reap significantly
higher returns than in other major stock markets focusing on high-growth oriented
companies that cater to a new Japanese consumer, who is recession-weary and price-conscious.
Despite Japan's still sluggish consumer spending, retail warehouse formats, one-stop
shopping in different discount stores, planned weekend shopping in bulk, 24-hour
shopping, and "take-out" food - practices unheard of a few short years
ago - are becoming customary.
Searching for stocks which are innovating and catering to the new Japanese
consumer is clearly the correct strategy because
many of these companies achieve a higher return on equity and higher profit margins
nearly double those of old-style Japanese companies.
Certainly others recognize this opportunity; but Shiozumi Asset Management
Co., Ltd. believes that an investor's superior return will be built only by a
single-minded dedication to this strategy. It is not enough to have portfolio
access to the Japanese market, but rather it requires a specialist's understanding
of the rapid evolution of economic, political, social, and financial developments
within Japan to fully exploit this strategy. As growth specialists, we believe
that we are uniquely capable to exploit this strategy.