What Next for Japan?

Japanese equities have returned an astonishing 82% over the last 15 months. But many commentators believe such a rally is a false dawn

Cyrique Bourbon 3 February, 2014 | 3:45PM
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After decades of disappointments following the 1990 market crash, Japanese equities have returned an astonishing 82% in Yen terms over the last 15 months. Many commentators believe such a rally is a false dawn given there have been approximately five rallies of over 40% in the last 20 years with all subsequently disappointing, driven by a  mixture of  political instability, low economic growth, persistent deflation and geological events.

Japan now ranks as one of the best performing major developed equity markets

In that environment, active managers have struggled to deliver consistent returns as specific styles have alternatively performed strongly and subsequently often mean-reverted.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Man GLG Jpn CoreAlpha Eq D H GBP171.46 GBP0.99
Schroder ISF Japanese Eq A Acc JPY1,399.71 JPY0.47Rating

About Author

Cyrique Bourbon  is multi-asset portfolio manager for Morningstar Investment Management EMEA

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