Nikkei to Underperform Topix in Near Future: Oasis Management

The video discusses significant changes in Japan's market indices, particularly the shift from the Nikkei to Topix, and the implications for ETFs and the BOJ. It covers expectations for shareholder returns amid record profits and improved corporate governance. The video also highlights public and private engagements with companies, M&A activities, and white knight scenarios, including notable cases like Shimatsu and Tokyo Dome. Finally, it provides updates on Hazama Ando's share buyback and future proposals to enhance shareholder value.

What is the main reason for Japan's shift from the Nikkei index to the Topix index?

• To increase the number of companies in the index

• To follow a price-weighted index

• To make it easier for the BOJ to buy ETFs

• To decrease the number of sectors in the index

What is the expected impact of improved corporate governance on Japanese companies?

• Decrease in shareholder returns

• Higher dividends and profitability

• Reduction in corporate profits

• Increase in hostile M&A activities

How do Japanese companies prefer to engage with stakeholders for corporate changes?

• Through government interventions

• By avoiding any public engagement

• By working privately and publicly when necessary

• Through public announcements only

What is a significant change in Japan's M&A landscape as discussed in the transcript?

• Increase in government regulations

• Reduction in M&A activities

• Acceptance of hostile bids by boards

• Decrease in hostile takeovers

What was the outcome of the takeover bid for Tokyo Dome?

• It was accepted at a 45% premium

• It was considered unfair by independent committees

• It was rejected by the board

• It led to a decrease in profitability

What role do independent committees play in takeover bids in Japan?

• They always approve the bids

• They ensure fair pricing for minority shareholders

• They only focus on increasing premiums

• They have no influence on the bids

What is the significance of the share buyback implemented by Hazama Ando?

• It was done to reduce company cash reserves

• It marks the end of their corporate changes

• It is the beginning of further profitability improvements

• It was a response to government pressure