Japan leads the region in passive equity investing
As passive investing continues to gain ground world-wide, Japan remains the heavyweight investor in Asia.
As passive investing continues to gain ground world-wide, Japan remains the heavyweight investor in Asia.
Seeking returns from some of Japan’s undervalued big companies, replicating indices, and using a benchmark-agnostic approach are some of the favoured strategies of Japanese funds with substantial assets under management.
Investors in the Japanese stock market benefited from currency fluctuations in 2016 and the outlook for 2017 appears favourable, too.
Small-caps, a buying-and-holding approach, and unrestricted use of equities are some of the fund strategies to watch in Japan, according to Morningstar investment research analyst Lena Tsymbaluk.
Most commentators believe Japan’s domestic environment remains encouraging in terms of the outlook for 2017, says Lena Tsymbaluk, investment research analyst at Morningstar.
A major Japanese insurance firm is to lay off 34 staff in its payment assessment department and replace them with an artificial intelligence (AI) system this month to improve operating efficiency.
Despite all the talk about the US equity Trump-boost in recent weeks, Japanese equities are actually a lot more popular with asset managers. Their consensus is that they will return more than 5% in 2017.
American International Group (AIG) has agreed to sell its Japanese life insurance business to one of Asia’s most prominent insurers FWD Group for an undisclosed sum.
The Fed and the Bank of Japan failed to disappoint markets on Wednesday. And, with that lack of disappointment, has come a growing belief that the banking sector might well be turning once more into a viable investment destination.
With news overnight that the Bank of Japan has unveiled a new form of stimulus, professional investors and economists reacted with mixed enthusiasm.
A financial adviser for Japan-based Gibraltar Life Insurance has been accused of stealing around JPY190m (£1.4m, $1.9m, €1.7m) from 26 customers over a period of 10 years, the company said in a statement on its website.
The Brexit vote has had a wider impact beyond the UK and Europe, temporarily derailing the US Federal Reserve’s plan to raise interest rates and allowing other governments to argue that there is a crisis under way that needs to be addressed with more forceful stimulus. Japan is a case in point.