In the coming years, Japan is set to experience its most politically stable period since Koizumi’s tenure, making it a propitious time for pushing through reforms. Prime minister Abe realises that modifying expectations is key to ending the vicious cycle of deflation and regression, and replacing it with a virtuous cycle of inflation and growth.
- Japan is a country of leading industries in high-end and high-margin sectors.
- It has strategic exposure to consumer-spending growth in Asia.
- Its economy has improved, buoyed by Abe’s wide-ranging reforms.
- Macroeconomic data are showing strong signs of improvement.
- Valuations are highly attractive, both in absolute and relative terms.
INVESTMENT PHILOSOPHY AND TEAMS
UBP has partnered up with recognised, class-leading managers for its Japanese equity market exposure. These managers cover the small- and mid-cap, and value sectors; each manager has a specific investment philosophy and a dedicated management team with extensive experience.