At the same time things are getting better from an economic perspective, Braun explains that while both corporate profits and corporate governance continue to improve, the valuations of Japanese companies remain attractive and that the framework exists for returns on equity (ROE) to continue to expand.
In a further boost, Japan’s inflation outlook today appears much more stable and positive, which should all add up to give investors’ confidence on its future prospects. However Capital Group believes that nothing less than exceptional research and a long-term perspective will be required for managers to come out ahead in Japan.
Within its investment offering, the Capital Group Japan Equity Fund (LUX), which is a core and style agnostic portfolio, Braun argues the group is well geared provide investors what they need to have a broad exposure to the Japanese equity market.
