We are very pleased to inform you that Watanabe & Brothers’ Investment issued 2020 Annual Report on April 3rd, 2021. In this regard, our fund underwent 89% growth during FY2020 (TTM).
In 2020 Q4, our fund was suffering from its lower growth rate due to a surge in nominal interest rate.
However, the surge in the nominal interest rate in the US bond market is primarily due to rising inflation expectations, and the yield on US 10 Years Treasury Inflation-Protected Security, which corresponds to the real interest rate, remains in the negative territory. We believe that the future rise in inflation that accompanies the resumption of the US economy will lead to the higher revenues of growth stocks together with the lower unemployment rate, and thereby medium- to long-term growth of the stock price. Thus, considering the growth rate of our fund during FY2020, we expect 60 to 80% growth of our fund during FY2021.
At the same time, in order to support the sound growth of our fund, we plan to purchase stocks with lower PER in FY2021 to balance the growth potential and risk of our fund.
Watanabe & Brothers’ Investment will continue to invest in US equities and bonds in accordance with the idea of ESG investment.