Japanese Equities

Over the past three decades, Japan has faced unique challenges. But it’s always been home to high-quality stocks – if you know where to look. There are many world-class companies that are global leaders in their respective fields. And increasingly, their fortunes are tied to the growth of the emerging world. Investing in Japanese firms is not equivalent to making a bet on the Japanese economy.

Key Drivers

  • Diverse equity market– There are over 2,000 listed companies across a wide range of industries in Japan, with numerous iconic brands and first-rate companies (as of 30 Nov 2017).
  • Companies buy back share– Corporate's in Japan have increased share buybacks, a sign of growing focus on shareholder returns.
  • Appealing valuations– Stocks are still inexpensive on an absolute basis. Corporate earnings are expected to grow at a healthy pace.
  • Improving corporate governance– Japan has adopted the Stewardship Code, which urges investors to engage management more effectively. Aberdeen was one of the signatories of the code.