Japan turning shareholder friendly
Meanwhile, Matthews Asia has launched a Luxembourg-domiciled Japan fund.
The vehicle seeks to invest in companies that are positioned to benefit from improvement in corporate governance and domestic economic growth.
The fund will invest in Japanese companies across market capitalisation.
“Japan has been seen by many investors as a ‘large-cap value’ market over the past 15 years, but we view Japan as a long-term, core investment opportunity and, as such, we invest across the market-cap spectrum,” Kenichi Amaki, lead manager said.
The portfolio will include lesser-known small-cap companies with strong and sustainable growing domestic businesses relative to many large-cap peers, Amaki said.
“We also look at Japan in a regional context, paying particular attention to firms that are poised to benefit from the rising income levels in the region and that are tied into the growth of the Asian household,” he added.
The Japan fund has been in operation in the US since 1998.
“Japanese companies are increasingly benefitting from rising levels of income growth and improving productivity levels across Asia. The integration of Japan with Asia’s broader economy is a key reason why we are excited about investment opportunities in the Japanese equity market,” Jonathan Schuman, head of global business development added.
Investor sentiment toward Japanese equities have increased significantly following the expansion of the government stimulus programme last year and the country’s $1.2trn Government Pension Investment Fund’s plan to raise equity allocation targets.
Managers are also noticing corporate cultural changes that include a movement toward increased dividends and share buybacks, which could lead to a long-term re-rating of Japan.
