Advisers prefer to think global when accessing Japanese equities
The poll, which was conducted via Twitter, found that 70 per cent of advisers prefer the exposure to come from global funds, compared with 30 per cent who prefer the exposure to come from dedicated Japanese equity funds.
The Japanese equity market is notoriously difficult to make money from, with issues around the treatment of minority shareholders combined with a sluggish outlook for the economy, and the composition of the index, which is to a large extent comprised of value stocks, while over the past decade, growth equities have been in vogue with investors.
But as global growth picks up, and the possibility of interest rate rises around the globe has become central to investors' thoughts, then the potential exists for a prolonged period of outperformance from value stocks relative to their growth counterparts.
In addition, successive Japanese governments have embarked on reforms with the aim of improving corporate governance and attitudes to minority shareholders, with the aim of improving the equity market’s reputation and the productivity of the economy.
david.thorpe@ft.com
