Our Approach to the Principles for Responsible Investment
“Contributing to society through capital markets”
This is the management philosophy of Rheos Capital Works. It is the DNA that has been fully ingrained in our day-to-day investment management and related operations since our company was founded in 2003. Rheos Capital Works is a company that creates flows ("Rheos" in ancient Greek) that allow us to "contribute to society through capital markets" by using many assets ("Capital") such as human resources, capital, wisdom, and technology in a kind of workshop ("Works"). As such, it has been natural for us since the beginning to invest in companies that strike a balance between environmental friendliness, social responsibility, and good corporate governance.
Our most important mission in investment management is to generate long-term and stable investment returns in order to protect and increase the value of assets entrusted to us by our clients. To this end, long-term investment is crucial. When making such investments, it is essential not only to analyze financial information that generates corporate value, but also to understand and analyze non-financial information, such as a company's human assets, customer assets, and corporate governance, which form the basis of such information. For this reason, we believe that one of the most effective strategies is to invest in companies that have firmly incorporated consideration of sustainability issues into their operations.
However, we do not decide to invest in companies solely on the basis of high ESG ratings. Even if a company currently has a low ESG rating, we will focus on its underlying value, and if we determine that we can effectively work together with the company and improve its corporate value, we will invest in it. In other words, we firmly believe that contributing to solutions for issues related to sustainability is itself a means of "contributing to society through capital markets," our management philosophy. Going forward, Rheos Capital Works will continue to fulfill its responsibilities.