Risk Management

Our investment philosophy is based on an intelligent, purposeful approach to risk.

Contact Us

Please get in touch and our expert support team will answer all your questions.

Corporate and Institutional Solutions

Tadaoki Kokusai provides a wide range of capital market products and services to corporate, government and institutional clients who choose us for our knowledge, innovation and experience.

Responsible Investing

We are Japanese asset manager with global reach, seeking to achieve superior risk-adjusted returns for our clients by identifying high-quality, sustainably growing companies through in-depth fundamental analysis.

Risk Management

The Risk Management team monitors and manages market, liquidity, model and funding risk exposures of firm-managed investments. The team performs a wide range of primary and macro-driven research, including stress-testing, scenario analysis, and hedging methodologies. The team works closely with the firm’s portfolio managers covering macro, equity, credit and derivatives markets in order to holistically manage the firm’s risks.

Stock Selection and Risk Management

Selecting stocks

Our managers steep themselves in their markets through internal and external research, conversations, conferences, meetings with analysts, economists, industry experts and with the management of companies.

We run an internal risk management system that stores all this information and analysis, and makes it readily available to our fund managers.

Some of our fund managers also use proprietary stock-screening systems, which narrow down the number of stocks to be examined in more detail. These screens allow our fund managers to concentrate their time, knowledge and skills on the most promising investments.

We believe that, whatever markets are doing, opportunities for above average returns are available for active managers. In practice this means that we only buy a share if we believe that it is undervalued, and not because it represents a significant proportion of the index. We are benchmark-aware, not benchmark-driven.

The result is ‘high conviction’ portfolios, constructed to meet, or even to exceed, our clients’ expectations. Our portfolios quite frequently have a ‘look and feel’ which is markedly different from those of our competitors and of the relevant benchmark.

Managing Risk

We encourage our fund managers to pursue outperformance through active fund management. At stock, sector and overall portfolio levels, we monitor and assess risk regularly. Drawing on the daily data generated by our Performance and Investment Risk teams, our fund managers monitor risk each day. But they do so in the context of our policy for managing risk.

We have a Risk and Compliance function within our management team.

  • All our fund managers are aware of the risks in their portfolios, and work in close parallel with our investment committee. It meets quarterly, and as required, to evaluate risk across each of our funds.
  • Another check and balance are our Risk and Compliance Committee. It meets monthly, and as required.
  • Risk is also a central concern of our chief investment officer and, ultimately, of our senior partners. Both can discuss risk with a fund manager, who may then be asked to adjust a portfolio accordingly.
  • The security of our clients’ money takes precedence over everything. So, we select carefully the brokers, counterparties and trustees we use, and then we oversee these relationships thoroughly.



Focused on value

Our clients' prosperity fuels our success. By seeking to deliver value and ensure they meet their financial objectives we deliver our own goal of a stable, growing business.

By understanding our clients’ needs, anticipating how these will evolve in the future, and focusing on building wealth for them in the long-term, we remain current, relevant and up-to-date.

Tadaoki Kokusai provides Customized, Innovative, Alternative Financial Solutions and Wealth Management Investment Strategies for individuals and small businesses.

We stay close to our clients to really understand their needs, for both today and down the road. We bring unique solutions to the table followed by flawless execution.