Dalton: Japanese equities could rebound to 2005 levels

Dalton Strategic Partnership's global head of asset allocation Andrew Dalton is seeing value in out-of-favour Japanese equities and predicts this year they could perform as strongly as in 2005.

Dalton, who heads up the £43m Melchior Global Active fund, said the country suffered from deflation of 3% a year. However, he believes the country has a number of standout companies, especially in the technology space. The manager predicts Japanese equities will be the best-performing asset class this year and has positioned the portfolio to profit from the country bouncing back from stagnation, upping exposure in the fund by 10% to 11.8%. “This year the best-performing asset class for equity markets will be Japan as it is the cutting edge in applied technology,” said Dalton. “The ...