Japan 

Guide to Japanese equities

  • To understand what Shinzo Abe's reforms have intended to do.
  • To learn which parts of the market are working well.
  • To grasp what opportunities Japan might offer to investors.
CPD
60min
Guide to Japanese equities

Introduction

Prime minister of Japan Shinzo Abe's fiscal policy has intrigued international and domestic investors.

Mr Abe announced a goal of raising gross domestic product (GDP) by 20 per cent to 600 trillion yen by 2020.

Can the reforms of 2016 lead to strong returns from Japan's diverse and mature equity market or will the so-called Abenomics have proved to be ineffective at helping to return the country to growth?

So far, companies have been starting to show signs of good corporate governance and shareholder remuneration through buy-backs and dividend payouts, while there are many pockets of strong growth among some Japanese equities. 

This guide explores the current state of Japanese equities and the effect - intended or actual - of the fiscal policies put in place over recent months.

It looks at whether Japanese companies can continue to grow and perform strongly, despite the economy, and what the prospects for investing in the country might be over the short and medium-term.

Contributors to this guide are: David Jane, fund manager on Miton's multi-asset fund range; Nathan Gibbs, client portfolio manager of Japanese equities for Schroders; Cyrique Bourbon, portfolio manager at Morningstar's Investment Management group; Ben Willis, head of research for Whitechurch Financial Consultants; Katsunori Kitakura, strategist at SuMi Trust; Kwok Chern-Yeh, head of Japanese equities at Aberdeen Asset Management; Robin Black, investment manager for global equities at Kames Capital; Nick Peters, multi-asset portfolio manager for Fidelity International; and Alex Blake, client manager on the Baillie Gifford Japanese equities team.

In this guide

CPD
60min
  1. Why did the Bank of Japan's move hurt banks, according to Mr Kwok?

  2. At what level has the Bank of Japan capped 10-year bond yields?

  3. What does Mr Kitakura believe has been a positive structural change in Japan?

  4. At the end of June 2016, what was the dividend yield on the Nikkei 225?

  5. What does research tend to show among small caps, according to Mr Black?

  6. How much has Miton's multi-asset range got currently in Japanese equities?

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