We are very pleased to inform you that Watanabe & Brothers’ Investment announced 2021 Q1 financial results. In this regard, our fund underwent 53% growth (YoY) with respect to 2020 Q1.
In 2021 Q1, our fund was suffering from its lower growth rate. It was due to a surge in nominal interest rate since this February. The quarterly growth of our fund in 2021 Q1 was recorded as 7.5%. We believe that the surge in the nominal interest rate was mainly due to a surge in real interest rate. According to some reports, the surge in real interest rate was brought by worsened balance of US bond supply and demand after the President Biden’s announcement of USD 1.9 Trillion stimulus plan.
As for the higher inflation expectation, it is partially due to a drop of commodity price in 2020 Q1, as well as some bottle necks in supply chain. Although some financial officials are mentioning tapering in financial easing, we believe that the surge of the real interest rate as well as the higher inflation expectation are temporal.
Watanabe & Brothers’ Investment will continuously invest in the US listed stocks based on the philosophy of ESG investment.