Japanese equities return to favour
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.
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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.
Amid the unprecedented political upheaval in the US and Europe, Japan looks like a haven of stability. Could Japanese equities profit from this newly acquired status?
While EU leaders unveiled plans for a new €321m state-of-the-art ‘Europa’ Brussels HQ, over in Frankfurt the ECB was building its own foundations for change.
Despite all the talk about the US equity Trump-boost in recent weeks, Japanese equities are actually a lot more popular with asset managers. Their consensus is that they will return more than 5% in 2017.
Japan has reported third quarter annualised GDP growth of 2.2%.
With news overnight that the Bank of Japan has unveiled a new form of stimulus, professional investors and economists reacted with mixed enthusiasm.
Super Thursday has come and gone, but Wednesday could shape up to be somewhat of a ‘Wild Wednesday’ on financial markets, should the plethora of central bank announcements on the day not go according to plan.
Asset managers have been too optimistic in their return forecasts for European and Japanese equities over the past 18 months or so. Despite having faced disappointing returns over the past year or so, they are not yet prepared to meaningfully lower their expectations.
Markets were largely flat on Friday as investors digested the news that Japan has decided not to launch the ‘helicopter money’ that some see as the answer to its economic struggles.