276. Japan’s resilience and debunking deglobalisation

Delve into Japan's economic landscape and its place in the world with Sam Perry, manager of the Pictet Japanese Equity Selection fund. Sam gives a critical examination of the perception of deglobalisation and its impact on Asia and Japan, before shifting to Japan's unique economic environment and newfound – and welcome - inflation. We also consider how Japan's recent economic stimulus and policies have shifted the narrative, with increased investment opportunities and economic growth, the “inefficiency” and misconceptions of the Japanese equity market and the long-term prospects for the car industry in Japan.
Apple Podcast Spotify Podcast

The Pictet Japanese Equity Selection strategy is a focused approach that commits to long-term investments in large and mid-sized enterprises. Employing a blend of market evaluation and in-depth company analysis, the fund manager identifies Japanese firms that actively endorse strong environmental and governance standards while presenting promising growth potential at an attractive valuation.

What’s covered in this episode: 

  • Why the globalisation genie is already out of the bottle
  • How US/China tensions influence Japanese companies
  • Why iPhones will never be built in the US
  • The reshuffling of supply chains and what that means for Japanese companies
  • What a pair of Jeans can tell us about the cost of labour
  • A brief history of Japanese banks and inflation rates
  • Why inflation in Japan is so different from the US or UK today
  • Can outperformance in Japan continue?
  • How Japanese companies are coping with rising costs
  • Is the Japanese market the most inefficient equity market?
  • Why under-researched Japan provides opportunities for active managers
  • Why the Pictet Japanese Equity Selection fund doesn’t have a style bias
  • The opportunity in car manufacturers today
  • The strength in Toyota’s battery technology
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.