Mid and small caps offer value in ‘Marmite' asset class

ON JAPAN

Ashburton's Simon Finch says investors should look below the top 50 countries to find value.

Japan’s corporate tax rates have been higher than those of its regional competitors for a prolonged period. Rather than trying to encourage inward investment, particularly after the disasters in March, recent policy announcements seem to favour increasing corporate tax further, as well as raising income tax rates, which is unlikely to lead to much needed inflation any time soon. Many believe Japan should seek to open up special enterprise zones to encourage investment, particularly in the devastated areas in north-east Japan. While we would be wary about focusing solely on an area which ...