205. The price of a Big Mac in Tokyo… and why it matters for investors

Andy Brown, investment director for the Baillie Gifford Japanese equity team, talks to us about how Japan is finally opening up after Covid, and how the economy is running at a different speed to the rest of the world. He tells us why China’s reopening is beneficial to Japan, explains what the Big Mac Index is and why it matters, and then discusses opportunities from collaborative robots to gaming companies. He finishes by telling us why the Baillie Gifford Japanese fund has recently sold its holdings in car manufacturers.

Baillie Gifford Japanese fund is a well-managed portfolio with a clear investment strategy, which offers complementary exposure to those funds that are focused more on the value of a company rather than its growth prospects. It has been one of the most consistent funds in its sector and has proven itself in many different market environments.

What’s covered in this episode:

  • Why the Japanese economy is moving at a different pace to the rest of the world
  • If the reopening story is about to begin in Japan
  • How China’s reopening could benefit Japan
  • Why Japan is a cheap destination for tourists today
  • The Big Mac Index and what it tells us
  • If Abenomics can survive the death of its creator
  • The themes the fund is investing in
  • Why Japan is playing catch-up in the digital revolution
  • What is attractive about robotics and automation for investors in Japan
  • Why the fund has sold its holding in car manufacturersWhy investors should
  • consider allocating money to Japanese equities
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