The slow pace of change in Japan and the meagre improvements made so far have been a difficult pill to swallow for Abenomics supporters. On top of the lack of reform, there is the ageing population, a deflationary environment and negative interest rates to contend with.

The slow pace of change in Japan and the meagre improvements made so far have been a difficult pill to swallow for Abenomics supporters. On top of the lack of reform, there is the ageing population, a deflationary environment and negative interest rates to contend with. Unfortunately, it is far too easy to get stuck on the top-down negativities when investing in Japan and lose sight of the real investment opportunities on the ground.

However, while we share the market’s concerns at the macro level, we believe that there are plenty of decent investment opportunities to be found for the bottom-up investor. This latest update focuses on two of our portfolio holdings – Keyence Corp and Harmonic Drive Systems – and highlights the reasons we find them attractive on a long-term view.

 

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