Japan Catalyst, Inc. was established as a part of Monex Group with the goal of transforming the Japanese capital market and corporate sector. In order to respond to an ever-changing business environment, changes in corporate management are required, and companies are trying to realize the changes. We will be a catalyst for the changes in Japanese companies by supporting them through investment and engagement based on a long-term view.
We will act as a bridge between listed companies in Japan and individuals who are the ultimate shareholders, and conduct investment that benefits both parties. We believe that we can contribute to the activation of Japanese economy by providing listed companies with ideas and encouragement for business reforms. Also, we want to provide individual investors with opportunities to discuss about their investments as well as providing investment returns on long-term basis.
We not only invest in the gap between the intrinsic value of a company and the current value (stock price), but our investment itself also aims to act as a catalyst to eliminate the gap. We believe that we can provide society with the value of a true investor that goes beyond the zero-sum game of the market by supporting the management reform of companies and providing excess returns to beneficiaries.
We will leverage the funds of individuals who are the ultimate shareholders of listed companies in Japan, and represents the voice of individual investors. In addition, by providing investment returns to Japanese individuals, we aim to create a healthier capital market and personal wealth creation.
We will engage with Japanese society by opening up the discussion, rather than limiting our engagement to our investee companies. We believe in the importance and potential of our engagement activities, and we hope that this type of investment with active dialogue with companies will become a social movement in Japan.
The Japanese capital market has entered a new stage thanks to the corporate governance reform since 2014. The establishment of “two wheels of the car” by the Japan Stewardship Code (institutional investor action principle) and the Corporate Governance Code (corporate action principle) requires both investors and companies to have a “purposeful dialogue.”
Japanese companies understand the significance of this and are making significant progress; however, in order to achieve tangible result of the corporate governance reform, it is necessary for the attitude of corporate change to translate into actual changes, and we believe that it is necessary for investors to show support along the way.
We will support the corporate governance reform of Japanese companies through our investment.
“啐啄同時(Sottaku Douji)” ～Zen saying～
Our ideal engagement style is “啐啄同時(Sottaku Douji)”
啐(Sotsu) is the sound made by the chic trying to break the eggshell from the inside to hatch. 啄(Taku) is the sound made by the mother bird trying to break the eggshell from the outside. 同時(Douji) means simultaneously.
Hence, the Zen saying “啐啄同時” (Sottaku Douji) implies that the chic can hatch if pecking from both sides works simultaneously.
Just as in corporate management, even if the mother bird pokes from the outside or the chick pokes from the inside, the chick will only be safely hatched when both sides are ready.
We believe the ideal form of engagement investment is offering an outside hand to support company management when the company is trying to change.
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