Is it time to 投資する in Japan? The Olympic games with no fans might not give it a 上げる, but its 'cheap' companies could 証明する a runaway success

By ROSIE MURRAY-WEST, FINANCIAL MAIL ON SUNDAY

Updated:

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Japan will 支配する headlines around the globe for the next three weeks as the オリンピック kick off this Friday.?

In normal times, a buzz such as this might 供給する a nice 経済的な 上げる to the Games' host country.?

But as the world's 注目する，もくろむs turn to Japan, should the 利益／興味 of 投資家s turn that way 同様に??

Winners: Japanese shares could race ahead even without an Olympic Games boost

勝利者s: Japanese 株 could race ahead even without an オリンピック 上げる

WHY JAPAN STILL HAS A WINNING FORMULA?

Sadly, Japan may not get a 上げる from the Games. After all, the pandemic has scuppered any hopes of a 観光旅行，事業 にわか景気. 一方／合間, a 欠如（する） of enthusiasm for the event at home means there is little 適切な時期 to translate Games excitement into 利益（をあげる）.?

Taeko Setaishi is 投資 助言者 to the Atlantis Japan Growth 基金. He says: 'The Olympics are 深く，強烈に 人気がない with the general public, making it difficult for a company associated with the event to cash in.'?

But while the オリンピック may be an 経済的な damp squib, there are plenty of other 推論する／理由s to 示唆する Japan has a winning 決まり文句／製法 for 投資家s 捜し出すing to grow their wealth.?

CHANCE TO FIND A BARGAIN?

The value of Japanese companies had been rising 刻々と until March this year, when 投資家s grew nervous about Ja pan's 返答 to the pandemic.?

Japan had controlled the spread so 井戸／弁護士席 that it has been complacently slow to roll out a ワクチン programme. Just ten per cent of the 全住民 are 現在／一般に fully vaccinated.?

As a result, the growth in value of Japanese companies has 追跡するd that seen in other countries. Some 専門家s believe this means there are Japanese 取引s to be had. After all, not all companies will be 影響する／感情d by a slow ワクチン rollout, 特に those that sell overseas.?

Darius McDermott is managing director at 投資 scrutineer FundCalibre. He points out that Japanese companies had been matching the 早い growth seen in the US from December 2012 until March this year. However, at this point 投資家s lost 信用／信任.?

'As a result, the 株式市場 in Japan is up just 4 per cent since January this year, compared with 8 per cent in the UK, and nearly 18 per cent in the US,' he says.?

Japan is home to many brands with 抱擁する international 控訴，上告, which are 均衡を保った to 利益 from pent-up 需要・要求する across the globe ? even if Japan's own economy takes a little while to bounce 支援する. の中で these are Sony, Nintendo, Toyota, SoftBank and Asahi.?

Chern-Yeh Kwok, 経営者／支配人 of the Aberdeen Japan 投資 信用, says: '輸出（する）s have 回復するd. 部門s such as 科学（工学）技術, 自動車s and those linked to 中国 are already seeing 増加するing 需要・要求する.'?

He 追加するs: 'We see Japan as a market packed with 適切な時期s, 特に in digitalisation, ロボット工学 and electric cars.'

BARRIERS TO GROWTH ARE COMING DOWN?

For years, Japan's economy has had three 特徴 持つ／拘留するing it 支援する. Firstly, it has been slow to embrace modern 科学（工学）技術.?

We may think of Japan as a land of?弾丸 trains and robotic convenience, but it is also a country that continues to be reliant on fax machines and where only 8 per cent of 購入（する）s are made online.?

Secondly, its company structures?have been やめる unusual in the past, resulting in 抱擁する 量s of cash hoarded on balance sheets and strange 株主 structures where 非，不，無-関係のある companies 持つ／拘留する 株 in each other.?専門家s believe this has held 支援する their 可能性のある.?

Thirdly, the 全住民 is ageing quickly. Construction 労働者s are 55 years old on 普通の／平均（する）, for example, which may have slowed 負かす／撃墜する 進歩. However, those three 限界ing 特徴 are quickly 存在 dealt with.?

Nicholas Weindling is lead 大臣の地位 経営者／支配人 for the JPMorgan Japanese 投資 信用.?

He believes the pandemic and an ageing 全住民 have 軍隊d companies to innovate. They have been 緊急発進するing to build ソフトウェア systems to 許す homeworking. A pivot に向かって home 配達／演説／出産s has given a 抱擁する 上げる to online shopping sales.?

'There are some good 適切な時期s for 投資家s in companies that を取り引きする Japane se working practices and 消費者 culture,' he says. 'I 持つ／拘留する 40 per cent of my 大臣の地位 in internet companies such as GMO 支払い（額） Gateway and BASE, which are helping Japan to 移行 to e-商業.'?

Company structures are changing too. The previous 総理大臣?Shinzo Abe brought in 法人組織の／企業の governance 改革（する）s that are 解放する／自由なing up cash from balance sheets. 現在の 総理大臣 Yoshihide Suga has made digitalising the economy a central plank of his 政策.

A VOLATILE MARKET BUT FUNDS CAN HELP?

If you own a 全世界の 公正，普通株主権s 基金, you probably already have 投資s in Japanese companies. For many 投資家s that may be 十分な.?

But if you believe Japan may outperform other markets, you may choose to 持つ／拘留する 投資s in a specialist Japanese 基金 同様に.?

However, because 投資s in Japan can be volatile, a Japanese 基金 should only （不足などを）補う a small element of your 大臣の地位. There are many low-cost passive 基金s 利用できる, 同様に as active 基金s overseen by a specialist 基金 経営者／支配人.?

James Carthew, at 投資 研究 company QuotedData, likes JPMorgan Japanese 投資 信用, which he says is '支援 the companies at the 最前部 of 科学技術の change'. The 基金 has 意味ありげに outperformed its peers over the past three years, and turned a £1,000 投資 into £1,446.?

He also について言及するs AVI Japan 適切な時期, which has returned 8.6 per cent this year. The 基金 was only 開始する，打ち上げるd in October 2018, so it is not possible to 裁判官 long-称する，呼ぶ／期間／用語 業績／成果.?

Carthew admires how the 基金 is 'trying to find growth companies that also have 法人組織の／企業の governance failings that mean they are undervalued, いつかs ridiculously so'.?

Dzmitry Lipski, 長，率いる of 基金 研究 at 投資 壇・綱領・公約 Interactive 投資家, likes Lindsell Train Japanese 公正，普通株主権. The 基金 is managed by Michael Lindsell, who has been covering Japanese 公正，普通株主権s since 1985. It is up just 4 per cent over three years, but 50 per cent over five years.?

He also likes Legg Mason IF Japan 公正，普通株主権 基金 for 投資家s looking to 投資する in smaller and 中央の-範囲 Japanese companies.?The 基金 is run by 退役軍人 投資家 Hideo Shiozumi who has been 投資するing in Japanese companies since 1970. However, Lipski 警告するs the 基金 is '意味ありげに volatile'. It 投資するs in companies 始める，決める to 利益 from Japan's ageing 全住民,?増加するing use of the 抑留する et and changing 消費者 lifestyles.?

Jason Hollands is a director of wealth 経営者／支配人 Tilney. He likes Baillie Gifford Japanese and LF Morant Wright Nippon 産する／生じる. 'These take very different approaches to 投資するing in Japan and will therefore work 井戸／弁護士席 in different 環境s,' he says.?

The Baillie Gifford 基金 has turned a £1,000 投資 into £1,240 over three years and is おもに 焦点（を合わせる）d on larger companies. The Morant 基金 的s companies that 支払う／賃金 an income and which appear cheap. A £1,000 投資 three years ago would now be 価値（がある） £1,022.?

For those looking for an income from their 投資, McDermott 示唆するs Baillie Gifford Japanese Income Growth which 産する／生じるs just under 2 per cent.

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