Japan Cash Equities: Andrew Jackson
Andrew Jackson
Director, Japan Equity Sales & Trading
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Japan Market
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Leadership
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RCM Japanese cash equities business is led by
Andrew Jackson who has over 10 years specialising
in Japan Equities as a Sales Trader
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Previous experience includes build out products
and platforms at MF Global and Churchill Capital
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Specialist and bespoke in style and approach,
Andrew writes own commentaries / morning notes
as well as individual single stock and pair trade
ideas
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Relationships with research providers such as
Advanced Research Japan (“ARJ”) and Shared
Research (“SR”)
Relationship with ARJ
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RCM relationship with ARJ include:
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Co-distribution model
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RCM gets on broker panels and receive votes and
also corporate access
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Execution business of ARJ / SR
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Japan is poised to remain active leading up to the 2020 Olympics
PM Abe has based his entire political career on getting the Japanese economy back on track
and the LDP with the BOJ towing the line will continue to throw as much ‘easing’ at the
problem in the short term, regardless of the debt burden its creating for the future
 The following are a few reasons and it is our house view why Japan will remain active for
investors:
 Even though the government has said it has no price targets for the NKY and remains
unbiased, the Bank of Japan remains actively buying ETFs in the market
 The government has pressured its public pension scheme out of JGB’s and into equities. With
Japan’s social welfare system fast approaching the danger zone due to a sharply aging
demographic, they almost have a situation which necessitates the markets trading higher to
support future retiree’s
 Through the likes of recent Japan Post IPO, which was significantly skewed towards retail
participants and was brought to market under-priced, Abe is using the stock market to get
cash back into consumers’ hand. Japan will never overcome deflation without a buoyant stock
market
Japan Corporates and outbound M&A
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Japan companies have a war chest for offshore M&A and are looking to diversify away from
the possibility of a further devaluing yen
We also believe it is an ideal time to look at the numerous minority situations in Japan where
cashed-up parent companies may look to reacquire subsidiaries
Trading Strategy
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We observe and advise clients to look for overall sector reversions as well as reversions within
the sectors versus peers in specific names
Given liquidity of Japan, it is a great market to trade relative value/pairs in. With plenty of
names in similar industries that trade similar volumes, there is a large number of ratios which
can be traded with ease.