Will increased engagement mean surge in returns for Japanese shareholders?

 Joe Bauernfreund, manager of the AVI Japan Opportunity trust

Joe Bauernfreund, manager of the AVI Japan Opportunity trust

When it comes to the Japanese market currently, cash is in abundance, valuation metrics are not stretched and corporates have the capacity to increase returns to shareholders.

With pressure from regulators and financial institutions, companies have become increasingly aware that shareholders do matter. By the end of November 2018, announced TOPIX buybacks had matched the 2016 highs and had Toshiba not been relegated to the second section they would have been 12% higher.  Nakano Refrigerators is a good example of how smaller companies are listening to shareholders. The company manufactures refrigerated showcases used in supermarkets and convenience stores. Does Japan needs to implement excess cash levy? In February 2018, on the back of pressure from a ...

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