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

Progress due to corporate governance improvements

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...