Japan continues to be the relative value trade in equities

Sacha Chorley of Quilter Investors

Sacha Chorley of Quilter Investors

In an environment where no region presents an obvious opportunity from a valuation perspective in 2019, Japan offers investors the best chance to at least get access to a major market at something of a discount.

This is not a recent development. The country has looked relatively cheap over both short and long-term investment horizons and continues to pivot its economy for a period of sustained growth.  It is therefore surprising, though beneficial, to see it so under-owned, with the latest Fund Manager Survey from Bank of America Merrill Lynch showing a 4% underweight to Japan.  Abenomics is proving itself to be a positive influence on the prospects for Japanese businesses. Corporate governance reforms are making a real difference to the way businesses are run and this is having a positive...

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