FTAdviser.com

Advertising

Paul Chesson, head of Japanese equities and lead manager of the £146m Japan fund, said he was less cautious towards large-cap equities than he had been for some time.

"This is primarily because some of Japan's best listed businesses are now buyable again, in my opinion. A number of blue-chip stocks have reached very attractive valuation levels," he said.

Chesson admitted he was still cautious about the economic outlook for Japan, as it is highly dependent on exports, and could be hit by declining global growth. China's support for Japanese exports could also be hurt by inflationary pressures, he warned.

Added to this, Chesson said Japan's labour market was experiencing "gradual deterioration", with consumer confidence at a four-year low.

However, the manager said he was confident the number of companies tipped for double-digit returns this year had grown significantly.

He cited electronic component giant Murata Manufacturing and car firms Toyota, Honda and Nissan as companies which were well positioned to offer value.

For more information, see next week's Investment Adviser (2 June).