Tokyo Broadcasting System (TBS)

The fund first invested in TBS in January 2017. Our analysis concluded that TBS’s operating business is dwarfed by their securities portfolio and real estate. The shares of TBS were trading at a 36% discount to our calculated net asset value (NAV). We determined that there were several corporate governance issues and balance sheet inefficiency that could be addressed.

Click here for further information on AVI’s shareholder proposal to TBS

Corporate Governance Issues

TBS has a low ROE of between 2.8% to 3.3% over the last five years. The ISS ROE recommendation is 5.0% and our recommended minimum ROE target is 8.0%. The Board of TBS is composed of 13 TBS employees and 4 non-employee Directors. However, the 4 non-employee Directors represent companies with cross-shareholdings. This type of board composition results in a lack of accountability and supervision.


Balance Sheet Inefficiency

TBS’ balance sheet illustrates poor capital allocation. 66% of the balance sheet consists of investment securities, non-core real estate and cash.



TBS’s two largest holdings, Tokyo Electron and Recruit Holdings, accounts for 50% of TBS’s market cap. However, TBS’s share price has significantly underperformed the share price of its two largest holdings.



Over the year, AVI has sought to instigate changes in the corporate governance at TBS. We have actively engaged with the Board of TBS to discuss various actions to enhance corporate governance and balance sheet efficiency. Subsequently, TBS cancelled the entirety of the treasury shares which amounted to 8.3% of the share capital.


British Empire Trust focuses on a diverse universe of investment opportunities often ignored by mainstream investors: family controlled holding companies, closed end funds and other asset backed companies.

This ‘investing in undervalued assets’ is what makes British Empire Trust an interesting addition to your portfolio.

Tokyo Tower, Japan
AVI Japan Opportunity Trust

Key facts

AVI Japan Opportunity Trust p.l.cは、本ウェブサイト全体を通して「AJOT」と記載されています AJOTの運用者であるAsset Value Investorsは「AVI」と記載されています。

AJOTは現在、英国金融行為監督機構(以下「FCA」)の非主流投資商品に関する規則に従い、 英国内の独立系ファイナンシャルアドバイザー(以下「IFA」) が一般の個人投資家にAJOT株式を推奨できるように業務を行っており、今後もそのようにしていく予定です。 この株式は、認可された投資信託であるため、非主流投資商品に適用されるFCAの規制から除外されています。© AVI Japan Opportunity Trust plc. 2018 Registered in England No: 11487703. An investment company under Section 833 of the Companies Act 2006. Registered Office: Beaufort House, 51 New North Road, Exeter, EX4 4EP. Asset Value Investors Ltd.が運用しており、同社はFCAの認可と規制を受けています。 過去の業績は、将来の業績を示すものとはみなされません。投資対象の価格および利益は、下落または上昇することがあり、 投資家は投資額の全額を回収できない可能性があります。AJOTはギアリング技術(レバレッジ)を使用することがあり、 これにより市場の動きが上下に誇張され、市場価値が突然大きく下落する可能性があります。 顧客の投資に影響を与えるリスクの詳細については、「主な特徴」をご参照ください。パフォーマンスの数値は、 プライス・トータル・リターンに基づく累積的なものであり、プランの手数料は含まれていません。詳細については、 電話(03458 500181)までお問い合わせください。税務上の取り扱いは個々の状況に応じて異なり、 将来的に変更される可能性があります。Asset Value Investors Ltd.は、Innovative Finance ISAsを提供しておりません。(これは英語の原文の日本語訳であり、日本語訳が誤っていた場合には、 英語の原文をご参照ください。)This is a Japanese translation of the original English text. If the Japanese translation is incorrect, please refer to the English original.


The website is directed only at Professional Clients in the UK. The website is issued by Asset Value Investors Limited (“AVI”), in respect of AVI Japan Opportunity Trust plc (“AJOT”). AVI is authorised and regulated by the UK Financial Conduct Authority (“FCA”). AJOT is a public company listed and traded on the London Stock Exchange.

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The price of the Shares will be determined by supply and demand in the market as well as by changes in NAV per Share. The market price of the Shares is therefore likely to fluctuate and may represent either a premium or discount to NAV per Share.