Noritsu Koki Co., Ltd.
Noritsu Koki Co., Ltd. engages in the manufacture and sale of environment solution, kitchen, and photo processing equipment. It operates through the following segments: Monodzukuri, Health Care, Drug Discovery, Senior Life, Agricultural Food, and Others. The Monodzukuri segment handles research, development, production, and sale of pens and cosmetic parts. The Health Care segment provides radiology services, survey data, and genetic testing. The Drug Discovery segment provides research, development and sale of biopharmaceuticals. The Senior Life segment handles publication and mail order services for seniors. The Agricultural Food segment produces and sells fresh vegetables. The Others segment handles investigation and investment of new growth areas. It also offers mail order for dental materials and development and sale of drug treatment database for insurance companies. The company was founded by Kanichi Nishimoto in June 1951 and is headquartered in Tokyo, Japan.
COMMENTARY
Market review
Global equity markets edged lower in November as investors assessed mixed economic data and evolving central bank policy expectations. Performance varied across regions, with quality and defensive characteristics proving more resilient amid a cautious market tone.
Equities in the United States posted modest gains, supported by resilient corporate earnings and stable inflation dynamics, with investor preference favouring businesses with visible cash flows and strong balance sheets. European markets outperformed as expectations for further policy easing strengthened in response to weak economic conditions in Germany and France, marking a reversal of earlier US-led market leadership. Asian markets were mixed, with Japan steady following the Bank of Japan’s October policy adjustment, while other parts of the region reflected ongoing global growth uncertainty.
Style factor performance shifted toward quality and defensive exposures, while momentum and higher growth segments lagged. Value strategies also found support as investors rotated toward reasonably priced businesses with dependable earnings profiles. Small-cap performance diverged by region, with European small caps demonstrating relative strength, while US small caps consolidated after strong year-to-date gains. In Australian dollar terms, global SMID-cap equities delivered positive returns despite the softer broader market backdrop.
Central bank policy remained supportive. The Federal Reserve maintained its data-dependent stance, with markets increasingly pricing potential rate cuts in early 2026 as disinflation trends gained credibility. The European Central Bank continued its easing cycle, while the Bank of Japan held rates steady, helping anchor risk sentiment and compress longer-term yields.
Portfolio Commentary
The Fund outperformed the benchmark in November, with returns driven primarily by stock selection in an environment that favoured quality and more defensive characteristics. Portfolio positioning remained stable during the month, reflecting a continued focus on high-quality businesses and flexibility to deploy capital should more attractive opportunities emerge.
Two positions were exited during the month. Scout24, a European online classifieds platform, was sold as industry conditions remained challenging for consumer-facing internet businesses. Companies continue to grapple with how to integrate artificial intelligence without materially diluting margins. Adeia, a US-based intellectual property licensing company, was also exited due to its heavy reliance on patent infringement exposure related to AMD. This reduced conviction in the sustainability and quality of its earnings profile.
These exits reflected the team’s ongoing discipline around business quality and risk-reward assessment. No new positions were initiated, and there were no meaningful geographic or sector shifts across the portfolio.
Performance among holdings was led by several idiosyncratic contributors. Vita Coco, a US-based beverage company focused on coconut water, delivered a strong earnings result during the month. Growth was supported by robust volume momentum, expanding distribution, and continued market share gains. Favourable tariff developments also provided relief across its supply chain, reinforcing confidence in margins and cash generation.
Allfunds, a European fund distribution platform, performed strongly following the announcement of exclusive acquisition discussions with Deutsche Börse. The development validated the strategic value of its wealth technology infrastructure after a challenging post-IPO period. Grupo OMAB, a Mexican airport operator, also contributed as operational discipline and exposure to nearshoring trends supported earnings resilience despite softer industry traffic data.
These gains were partly offset by weaker performance from a small number of holdings. Nextracker, (now operating as NextPower), a US provider of solar tracking systems, declined following its capital markets day. Investors reassessed the risks associated with expansion into adjacent business lines and more ambitious long-term targets. Frontdoor, a US home warranty provider, also detracted after management guided to higher investment spending and acknowledged rising claims cost inflation, despite strong underlying operating results.
Overall, portfolio performance in November reflected the benefits of disciplined stock selection within a stable portfolio structure. The team remains focused on owning high-quality businesses with durable fundamentals and believes this approach will be rewarded as earnings delivery becomes a more important driver of returns.