One year on from the Fukushima disaster which led to an overall economic loss in excess of $200bn, Ernst Glanzmann, fund manager of Swiss & Global Asset Management's Luxembourg-domiciled JB Japan Stock Fund, says corporate profits in Japan have now returned to pre-earthquake levels.
Glanzmann says Japanese equities have proved their high level of flexibility and dynamics over the year as companies recover production and corporate profits which, he confirms, have now returned to pre-earthquake levels.
In fact, Glanzmann, reports that there are some internationally-geared companies reporting their best earnings ever. “Going forward, favourable raw material costs and the fairly neutral yen should make a positive contribution to input costs and help companies to expand margins and profits.”
Investors are being advised to differentiate between those Japanese companies currently trapped in the lethargic home market and the global players who conduct a large portion of their business overseas. “Many global companies have learned to innovate and flexibly adapt their business strategy to tap the higher growth potential abroad. And they don’t have to go far: the archipelago is surrounded by growth markets. Already today, around 50% of exports go to Asia,” reports Glanzmann.
In this sense, Glanzmann says it is important to note that GDP doesn’t necessarily reflect the health and growth opportunities of individual companies. “As a nation, Japan may suffer from an ageing population and high government debt, but on a company level the outlook for many Japanese firms is very positive. Indeed, Japan offers exceptional value for investors willing to actively look for outstanding companies.”
Entry deadline: Friday 28 September 2018
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