"I am positive about the macroeconomic scenario in India" - Nobutaka Kitajima, CIO–Equity, LIC Nomura MF
2/7/2013 9:00 PM Thursday
Nobutaka Kitajima, CIO-Equity, LIC Nomura MF, has extensive fund management experience in the Asian markets. In an interview with Shailendra Lotlikar, he explains the reasons for his optimism on the Indian markets and throws some light on his investment philosophy.
- I am positive about the macroeconomic scenario in India because of the economic reforms that have been announced in the recent past…I think the government is clever enough to implement reforms and keep the momentum of an enhanced sentiment.
- The FII investments are likely to continue for India. The direction of monetary policy favours India.
- The government is taking steps to rationalise regulation, coal allocation, environmental clearances and much more. Going forward, there will be an improvement in the infrastructure sector. But, it is a slow burning story.
LIC Nomura MF
How did you begin your journey in the fund management industry?
It was in the late 1980s when I joined the Nomura Securities Investment Trust Management, which later became Nomura Asset Management, in Tokyo. The main thing for me was that there was a clear career path to build an expertise in a narrow field. Due to the lifetime employment practices in Japan, if you work for a regular company, you do not know where you end up at. Because the industry was booming, I was lucky to be in the middle of fund management from almost day one.
The fund management in Japan is different from that in India. What made you shift your base from Japan to India?
During the 1990s, the Asian stock markets started developing. Because I was the youngest member of the team, I was assigned with the Asian markets, which were very small at that time. I was handling the investment in Hong Kong, Singapore, Indonesia, etc. from a very early stage of their development. I have been a fund manager for Asia (excluding Japan) for more than 10 years.
At that time, India was closed to international investors except through depository receipts. Obviously, India is a big country and I wanted to get involved with it at some point of time.
Has the transition from Japan to India been smooth or have you faced problems in understanding the psychology of the Indian investors?
The investor psychology is the same everywhere and there is not much difference in that across the globe.
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