Managers optimistic on Japan in 2008

The Japanese market was the worst performing market in 2007, adversely affecting the performance of Japanese equity funds. The median fund in the S&P Japan mainstream sector returned -10.4pc over the 11 months to the end of November 2007, while its small-and mid-cap counterpart returned -16.1pc. Very few funds delivered a positive return last year. "Given the extent of the underperformance and continued growth in corporate profits, the Japanese market is seen as attractive on fundamentals," said S&P Fund Services' lead analyst, Alison Cratchley. She cited Richard Aston, manager of the S&...