Janus Henderson Japan Opportunities Fund on OBIC Business Consultants Co. Ltd.
Thesis
OBIC Business Consultants benefits from its competitive position in business software and a favourable mix of higher-margin activities. Growth in these segments improved profit margins during the quarter and helped the holding contribute positively to returns. The manager cites OBC as evidence that sound software business models can perform well even when the broader sector faces negative sentiment. It retains a fundamental, valuation-disciplined approach to such holdings.
“Stronger growth in OBC’s higher-margin segments helped to improve its profit margins.”
Key risks
- Negative sentiment towards software stocks and perceived AI disruption
- A reversal of growth in higher-margin software segments
- Market volatility caused by rising Japanese bond yields or inflation