The re-election of Shinzo Abe as Japan’s prime minister in September has triggered a surge in inflows to Japanese equities. Is Japan’s recent streak of strong performance set to continue or are we witnessing yet another false dawn?
Investors resumed their European equity buying binge in September, after a brief pause in August, as net fund flows into the asset class recovered to levels seen earlier in the summer. Japanese equities are also in demand.
While never in doubt, the strength of victory of Prime Minister Shinzo Abe’s ruling party in Sunday’s snap lower house election exceeded expectations, with the Liberal Democratic Party (LDP) securing more than half the number of lower house seats.
Japanese equity fund managers are backing small and mid cap companies in the tech space as well as ‘online disrupters’ ahead of the snap election to be held in October.
Net inflows into Japanese equity funds by European investors have picked up recently, as the current macro environment looks conducive to Japanese equities. Asset managers are also becoming increasingly bullish on the asset class.
Japan’s economy is beginning to show signs of life. Is this another false dawn, or a sign that prime minister Shinzo Abe’s reforms are working?
Net inflows into Japanese equity funds have reached their highest level in 20 months, according to Morningstar fund flows data. Multi-asset and absolute return funds are also seeing an increase in interest.
BlackRock has launched a sustainable ETF with exposure to Japan. It’s an addition to a range of ETFs the asset manager has launched recently.
Quantitative easing and negative interest rates have had a positive effect on the Japanese economy but investors are still split on the prospects for equities. Could Japan be about to blossom?
There’s a growing understanding within asset management that you need to either have scale or a niche specialisation to survive. But Guy Strapp, CEO of Singapore-based asset manager Eastspring Investments, begs to differ. He aims to transform the medium-sized Asia specialist into a global player.