JULY 2008 W5 ALERT
Who is the New Owner of JVC?
Why, California Public Employees Of Course!
Calpers Becomes Major Shareholder of Toyo Tires, Kenwood, and JVC
<Nikkei-TOKYO><July 30, 2008>The Nikkei is reporting that due to a difference in investing philosophy, an “intermediary fund” that was jointly owned by Sparx Group Co. and the California Public Employees’ Retirement System (Calpers) is being dissolved setting the stage for Calpers to emerge as a major shareholder in several Japanese companies including Toyo Tire & Rubber Co., Kenwood Corp., and Victor Company of Japan (JVC).
The intermediary fund was launched in 2003 with Calpers, Sparx, and “others” to primarily invest in Japan-based companies. The fund would then get involved with the companies operations and assist in improving their capital utilization.
However, the Nikkei story indicates that the fund has not performed well and Calpers, the largest U.S. public pension fund that oversees the assets of California’s public employees, sought to pull out.
This issue appears to be related to investment strategy…Calpers seeks a return in its invested capital within a three year time frame. Sparx Group, on the other hand, tends to get more deeply involved with companies and has a longer investment horizon.
Calpers will be paid with shares held in investments in proportion to its overall 40% ownership.