Speaker 0:
And what's the aim and objective of the trust?

Speaker 1:
Yes, Uh, our objective, uh, objective of the part is to generate the, uh, chapter return to output of the underlying market by 2% point

Speaker 1:
and the other we mentioned, uh, because of the structure change in Japan, Uh, especially for the corporate, uh, that provide a more interesting investment opportunity. Uh, like that. That, uh,

Speaker 1:
uh, easier to generate the A, uh uh, to out of the benchmark by two pi. Yeah.

Speaker 0:
And what would you say? The main characteristics of the trust. What what size company do you invest in? Do you have a particular style tilt?

Speaker 1:
OK, so we don't have, uh, any, uh, limitation in terms of the side of the, uh, market cap or side of the company. Uh, so we are investing it so in terms of the style as a result of the our bottom up approach, our fund typically has a value and the contrarian bias,

Speaker 1:
and that tends to over with the need to be small gap, uh, store where we find more opportunity to see the market in.

Speaker 0:
And you talk about that value element. What? What are some of the key value characteristics you look for in companies.

Speaker 1:
Yeah, so

Speaker 1:
obviously other value of style. We are quite mindful about the variation, like peak price to EE ratio price to ratio. But in addition to two variation measure, we also focus on

Speaker 1:
for the devaluation of the share price for catalyst to improve the variation from lower level to the higher level, so arbitrary, the variation measure and the capitalists for the changes to the point. We are focusing

Speaker 1:
and they hate the part time.

Speaker 0:
And how do you avoid falling into so-called value traps? You know, some companies are cheap for a reason.

Speaker 1:
Yeah, so again. So in that step, we are carefully watching about the what could it be the company or what could it be the change for the company to generate the much better data or much better on rule that the market is expected? So in that step through our automatic data sheet,

Speaker 1:
we are focusing on the management changes to their quantity changing and what could be the implication to the and the data for the company. So by focusing on the change to for the but we try to avoid the in the

Speaker 0:
and you've mentioned Catalyst several times. So could could you give me an example of, uh, a case where you you you know, there was something you saw. That was a catalyst. How long did you have to wait until it had the, you know, the the required impact on the market and that share price went up?

Speaker 1:
Yeah. Generally speaking, uh, we have a investment time item of the last 2 to 3 years.

Speaker 1:
So people that any new management came on board, probably one year is too short to make that you can change it under generate the data,

Speaker 1:
But basically the five or 10 years,

Speaker 1:
it's too long. If yeah, If we wait for for five years and the nothing put out

Speaker 1:
from the corporate,

Speaker 1:
our view was wrong. So we tend to we tend to wait for 2 to 3 years to see that that

Speaker 1:
initially group which changes in the company and as an

Speaker 0:
investment trust you can use gearing. So how do you use gearing in the portfolio?

Speaker 1:
Uh, in terms of the gear, uh, we tend to quarter over the gearing between the 10 to 15 range,

Speaker 1:
and, uh, we usually change the gearing by controlling the exposure to the meat to small cap stock. So then we see more interesting investment opportunities of the small cap area. Because of the, uh, against the large, we test the decreed exposure to the failure. By increasing labour,

Speaker 1:
I increase the

Speaker 1:
so at this moment, uh, our level is, uh, 11 to 12%.

Speaker 1:
Uh, so

Speaker 1:
we have it right to the last on the part of what sort

Speaker 0:
of resources have you got that you can draw on to to run the portfolio. And how important is it to you that you're based in Tokyo to run this?

Speaker 1:
Yes, Uh, in our Tokyo, uh, we have a nine large, uh, large party and the, uh, fish

Speaker 1:
The, uh is, uh, uh, essentially the the

Speaker 1:
main driver of the alpha generation, uh, to identify the the investment idea by day to day. So our one of the most, if not the most important of the generation. And how's the

Speaker 0:
portfolio position today

Speaker 1:
at this stage? Uh, we are over the domestic oriented name,

Speaker 1:
are aware that needs to move to return the domestic oriented name. Uh, because we have a a positive view that Japanese economy is still compared to the other part of the world. Uh, we have a more domestic political company

Speaker 1:
and the of the meat to more, Uh, so far, uh, to to this year, Uh, japanese equity market rally is more by the well known large cap exporter,

Speaker 1:
Uh, which, uh, provide more interesting opportunity in the area, especially so as a result, at this moment, our position, uh, more to the domestic oriented. So

Speaker 0:
we have to leave it there. Masaki, Thank you for joining us.

Speaker 0:
Thank you. Bye.