Investment Philosophy of the Company

Extensive and intensive fundamental research

is the foundation for alpha generation

Disciplined and unwavering investment process

is the foundation for repeatable alpha generation

Our Japanese equity investment management is based on the following investment principles that constitute the common philosophy of Sumitomo Trust. Based on such philosophy, we have developed our own investment process and competitive advantages.

It is the foundation for Alpha generation. Our fundamental research enables us to identify the best investment opportunities and investment ideas. The most reliable information for Alpha generation is the one we gather and produce in-house.

It is another foundation for repeatable Alpha generation. A team-based approach with a clearly defined process, a proprietary knowledge platform and proprietary models and templates are the key to ensure the consistency and transparency of the investment process, underpinning stable and consistent Alpha generation in the medium and long term.

We do not believe in a “star” fund manager approach, or a heavy reliance on a specific fund manager to be the appropriate approach to replicate an alpha pattern for consistent alpha generation.

Rather, we consider the team-based approach to be the best to produce high quality investment services with a focus on the (1) stability and consistency of investment, (2) transparency of the investment process, (3) shared investment knowledge by our organization.