< The 2014 All-Japan Research Team
| Takaaki Yoshino |
| Daiwa Securities Group |
First-Place Appearances: 10 Total Appearances: 11 Analyst Debut: 2004 |
The All-Japan Research Team Hall of Fame is inducting one new member this year: Takaaki Yoshino of Daiwa Securities Group, who earns his tenth top finish. This 48-year-old quantitative strategist has appeared on this roster every year since his 2004 debut, ranking below first place only in 2005, when he captured the No. 2 spot. Clients continue to value the quality and timeliness of his labors. “Yoshino-san’s research is quick, broad and deep,” cheers one advocate. And his “useful daily update of factor returns” is particularly noteworthy, another fan offers. Yoshino is convinced that quality investing will gain popularity this year, gathering momentum starting this month, with stocks in that asset class holding appeal even over a long-term horizon. This style is becoming more appealing, he says, in part because the Tokyo Stock Exchange in January launched its JPX-Nikkei Index 400, whose constituents are selected based on return on equity as well as market capitalization, operating profit, certain management considerations and other criteria. Another contributing factor is a possible shift to the new index as the benchmark for the Government Pension Investment Fund’s ¥128.6 trillion ($1.26 trillion) in assets. What’s more, if April’s sales tax hike results in a meaningful economic slowdown, the analyst notes, “a clear-cut, two-tier market” will emerge, with quality shares drawing strong buying interest. The factors that will command much attention, he observes, are ROE, equity-to-assets ratio, dividend-payout ratio and dividend yield. He advises investors to focus on growth names that are highly likely to deliver ROE improvement as well as sustainable companies, which are those “aiming to solidify profitability while keeping invested capital lean,” he explains. Finally, if the administration of Prime Minister Shinzo Abe earnestly implements its growth strategies over the long term, then Yoshino anticipates “natural selection in business, as seen in the U.S. — and riding on momentum-driven rallies should be rewarding.”
