BambuBlack founder Andrews: Japan and South Korea have shifted away from 'lazy balance sheets'

Progress due to corporate governance improvements

James Baxter-Derrington
clock
Jane Andrews of BambuBlack
Image:

Jane Andrews of BambuBlack

Japanese and South Korean firms have traditionally traded at a "cheaper multiple" than other nations due to corporate governance issues and "lazy balance sheets", according to BambuBlack founder and CIO Jane Andrews, who said the companies have made moves to resolve these issues in recent years.

"Japanese companies tend to have very large cash positions and as an investor, you are going to ask 'what are you going to do with this cash?' "The usual answer was 'it is for potential [mergers and acquisitions]', but you have started to see change," Andrews explained. "You have seen dividend payouts increasing and you are seeing that in South Korea as well. Some of the heavyweights, such as Samsung Electronics, have increased their dividend payout ratio." The manager for both BambuBlack's Asia ex-Japan All Cap and Asia Income & Growth funds added that corporate governance improve...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

Industry Voice: Why Active Duration Management Matters

Industry Voice: Why Active Duration Management Matters

As market dynamics twist and turn, a flexible approach delivers results according to T. Rowe Price's Arif Husain

Arif Husain, Head of International Fixed Income at T. Rowe Price
clock 17 August 2022 • 3 min read
At the end of June this year, TSMC was in 2,336 funds’ top ten with 2,062 of those being active funds.

Stock Spotlight: Taiwan Semiconductor powers on despite geopolitical tensions

Strong investment case

Kathleen Gallagher
clock 15 August 2022 • 4 min read
Yu Shimizu of SPARX

Abe's transformation of Japanese corporate governance will live on

Abe's influence will persevere

Yu Shimizu
clock 15 August 2022 • 4 min read
Trustpilot