Amundi Japan has outlined an investment policy that emphasizes customer diversification and engagement in Japan's stock market amid heightened uncertainty. The discussion covers practical examples of its proprietary classification criteria and three-axis investment decision-making framework.
As developments in the Middle East and the U.S. political calendar affect markets, Amundi Japan is analyzing the tailwinds and headwinds facing Japan's stock market based on long-term assumptions. While assessing the impact of sustained high crude oil prices on the economy, it points to the possibility that wage increases and demand trends in fiscal 2026 could have a positive effect on the equity market.
The company explained that it emphasizes diversification as a basic principle of equity management and selects stocks using a proprietary 10-sector classification that considers not only industry and geographic diversification, but also customer diversification. Final decisions are made by combining multiple indicators, including financial soundness and capital policy.
As the core of its value investment strategy, the company continues to select stocks whose share prices are undervalued relative to the value of their assets. Its assessments focus on PBR while also factoring in the adjusted debt ratio, cash and deposit ratio, and other discrete factors.
The company introduced initiatives to promote higher shareholder value through dialogue with corporate managers as part of its engagement activities. Specific examples included Gunze's capital policy and Dai Nippon Printing's investments in growth areas and strengthening of its capital policy. It indicated that it generally assumes an investment period of around 3 years.
Regarding the Tokyo Stock Exchange's market reforms, the company expressed the view that dialogue between investors and companies will become increasingly important, including stronger shareholder engagement with listed companies with small market capitalizations.