Despite geopolitical risks and less dovish central banks, the Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.
Given the shifting dynamics in the region, for investors interested in Asian equities, there are multiple options depending upon the level of risk they are willing to assume. This paper looks at the outlook for several countries in Asia-Pacific.
Investing in Japan is not the same as investing in Japanese companies. Given the increase in their overseas exposure, we believe it is a good time to revisit opportunities in Japanese companies.
The release of the second quarter data on aggregate Japanese corporate profits confirms my twelve-year theme about improving corporate governance in Japan and how investors should not worry about the slow domestic economy.
Our equity portfolio manager who specializes in India concludes that reforms should have a very positive effect on that country’s growth.
“Global investors and corporations should adhere to the model that political spats are no reason to get overly frightened or paralyzed.”
John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com
We think Japanese companies are poised for a pickup in capital expenditure, led by productivity enhancing investments.
The ageing world presents significant savings and productivity challenges to this and subsequent generations of investors and workers. Change will no doubt remain a constant, as it has been throughout the last two centuries in particular.
Our top Japanese Equity staff, including our CIO, report on how Corporate Governance remains on a strong upward trend, which should boost alpha for active managers and beta for the overall market via improvements in ROE and shareholder distributions.
The Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.