An innovative strategy which requires engaging constructively with Japanese companies to enhance investor returns has produced impressive results, significantly outperforming the Japanese market, according to GO Investment Partners (“GO”).

The TMAM-GO Japan Engagement Fund (“JEF”), launched on 29 March 2012, produced returns of 36% net per annum (39% gross p.a.) to 31 March 2015. This compared with 25% p.a. for its benchmark (TOPIX Mid 400 Index) and 23% p.a. for the wider Japanese market (TOPIX Total Return Index).

The strategy, which has over $350 million invested, was developed jointly by GO and its respected local partner, Tokio Marine Asset Management. It invests in listed small to mid-cap companies that have excellent core businesses but where the companies’ share prices have substantial upside potential if strategic, financial and governance issues are addressed. It then engages in a constructive and culturally effective way to deliver change.

The strategy is managed by a multi-skilled all-Japanese team with substantial experience of working with Japanese companies to influence change. They identify the best opportunities from the wide range of small and mid-cap companies that are listed on public markets in Japan. The strong reputation of Tokio Marine provides a significant advantage to the team when engaging with the Boards and senior management teams of investee companies.

Read more here: Successful Japan Engagement Strategy Marks Third Anniversary