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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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Recent News

Today's Pick

Feb 27, 2019
byAkane Hashimoto

There's a Fad for Corporate VCs in Japan. That's a Good Thing"Corporate mainstream are more interested in VCs than its  pension plans. Can't they collaborate and share expertise?"Japan launches 100m euro fund to invest in Nordic, Baltic tech companies"Again, corporate investments. There should be a way to bridge corporate activities and pension fund management."PRIMER: Japan's proposed retention rule for securitization."For those who are interested in." BusinessHow Toyota is helping Japan with its multibillion-dollar push to create a hydrogen-fueled society Policy (BOJ)Japan PM Abe's adviser says BOJ can shelve its price goal

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Recent News

J-REIT: Notice Concerning Acquisition of Asset (Silent Partnership Equity Interest)-Star Asia

Feb 27, 2019
byInvestment in Japan

J-REIT>Star Asia Investment Corporation's announcementStar Asia Investment Management Co., Ltd. (the "Asset Manager"), to which Star Asia Investment Corporation ("SAR") entrusts the management of its assets, announces today its decision on the following acquisition of an asset (Silent partnership equity interest).

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Noriyuki Morimoto's Blog

Aging Shochu and the Essence of Investment

Feb 25, 2019
byNoriyuki Morimoto

There are many things in the world whose value rises over time. For example, shochu becomes more expensive as it ages. Suppose I am a producer of shochu whose annual shipment is worth 100 million yen. I’m hoping to get out of ordinary low-priced shochu and switch to products aged for 10 years. The simplest way for this is to stop shipping for 10 years and resume with the aged products 10 years later. However, then my sales would be zero for 10 years, and I can’t make a living. So, as I’m currently breaking even, things would work if I can finance the annual expenditure of 100 million yen including living expenses: 1 billion yen in 10 years. If I borrow 100 million yen at an interest rate of 7% per annum for 10 years, and repay the principal and interest at once, the lump sum amount is about 200 million yen. That means that even if I pay a 7% interest rate, if I can sell the 10-year-old product at least twice the original price, there is value in the business. Generally, business makes sense as long as the expected value of the asset price growth rate exceeds the growth rate of the debt. And whatever functions as a business generally can be constructed as a target for investment. No bank would lend up to 1 billion yen, under conditions as favorable as lump sum repayment of principal and interest, to a small shochu producer with annual sales of 100 million yen, with shochu as collateral without applying an assessment rate. Enter the investment fund. If the price of shochu is more than doubled in 10 years, the fund would be able to return 7% or more to its investors. The source of investment returns is the profit of time. Because time increases value, the investor must buy time. To buy time is fund procurement as seen from the shochu producer's point of view, and provision of funds from the perspective of the investor. Investment is to give the profit of time. And the price of time is the rate of return.

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Recent News

J-REIT : Notice Concerning Disposition of Trust Beneficiary Right in 8953 Osaka Shinsaibashi Building-Japan Retail

Feb 21, 2019
byInvestment in Japan

J-REIT>Japan Retail Fund's announcementJapanm Retail Fund Investment Corporation ("JRF") announced today that Mitsubishi Corp.-UBS Ralty Inc., JRF's asset manager(the "Asset Manager"), determined to dispose of the trust beneficiary right in 8953 osaka Shinsaibashi Building.

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