Founder and CEO, Europacifica Consulting

Naomi Fink

Founder and CEO

Europacifica Consulting

Thematic (Sector/Industry)

"Why Hold Japan?" is a question that recurs among foreign investors, now the greatest cohort of investors in Japanese stocks.  The question tends to arise much more during cyclical downturns, as investors reassess their holdings.  Japan's lukewarm economic expansion as well as uncertainty surrounding events overseas still compel investors to justify their Japan allocation with a sound investment thesis, even if there are no imminent plans for portfolio reallocation.  As in the first installment of the series, <a href="https://www.smartkarma.com/insights/why-hold-japan-part-i-relative-tax-regimes" target="_blank" data-smartkarma-citation="insights:6854">Why Hold Japan, Part I: Relative Tax Regimes</a> , we once again focus on comparative metrics within the world's largest developed economies.  This time, we focus upon relative growth cycles and comparative valuation among G7 bourses.  On the macroeconomic side, we find Japan far less of an under-performer than it was at its cyclical trough in 2011-2012.  Aggregate index valuation metrics meanwhile show valuations in Japan to be far less inflated than in 2006 (mid expansion cycle) or 2011 (mid contraction cycle), while Return on Equity is much more in line with its G7 counterparts than in either of these historical periods.  There remain signals of greater longer-term under-valuation of smaller listed firms in particular among TOPIX constituents.

"Why Hold Japan?" is a question that recurs among foreign investors, now the greatest cohort of investors in Japanese stocks.  The question tends to arise much more during cyclical downturns, as investors reassess their holdings.  Japan's lukewarm economic expansion as well as uncertainty surrounding events overseas still compel investors to justify their Japan allocation with a sound investment thesis, even if there are no imminent plans for portfolio reallocation.  As in the first installment of the series, Why Hold Japan, Part I: Relative Tax Regimes , we once again focus on comparative metrics within the world's largest developed economies.  This time, we focus upon relative growth cycles and comparative valuation among G7 bourses.  On the macroeconomic side, we find Japan far less of an under-performer than it was at its cyclical trough in 2011-2012.  Aggregate index valuation metrics meanwhile show valuations in Japan to be far less inflated than in 2006 (mid expansion cycle) or 2011 (mid contraction cycle), while Return on Equity is much more in line with its G7 counterparts than in either of these historical periods.  There remain signals of greater longer-term under-valuation of smaller listed firms in particular among TOPIX constituents.

Why Hold Japan, Part II: Comparative Valuation Among G7 Economies

Independent, global risk consultancy, Control Risks

Aparajita Verma

Independent, global risk consultancy

Control Risks

Control Risks is an independent, global risk consultancy specialising in helping organisations manage political, integrity and security risks in complex and hostile environments. We support clients by providing strategic consultancy, expert analysis and in-depth investigations, handling sensitive political issues and providing practical on-the-ground protection and support.

Our unique combination of services, geographical reach and the trust our clients place in us ensure we can help them to effectively solve their problems and realise new opportunities across the world.

Donald Trump has been elected as the next US president. However, unlike Clinton, Trump did not comprehensively outline his domestic and foreign policies. As a result, there is considerable uncertainty about which policies he will pursue in office, and how aggressively he will do so. Based on the campaign, and the key issues in the global landscape, this note outlines six things companies need to know in the wake of the historic 2016 US presidential election.

Donald Trump has been elected as the next US president. However, unlike Clinton, Trump did not comprehensively outline his domestic and foreign policies. As a result, there is considerable uncertainty about which policies he will pursue in office, and how aggressively he will do so. Based on the campaign, and the key issues in the global landscape, this note outlines six things companies need to know in the wake of the historic 2016 US presidential election.

US Election Global Implications: Top Six Issues

On Asia, as with many other topics, US president-elect Donald Trump’s campaign rhetoric tackled taboo subjects and hinted at major departures from fundamental policies and principles. The region now waits nervously to find out where and to what degree that rhetoric becomes policy.

On Asia, as with many other topics, US president-elect Donald Trump’s campaign rhetoric tackled taboo subjects and hinted at major departures from fundamental policies and principles. The region now waits nervously to find out where and to what degree that rhetoric becomes policy.

The Trump Presidency: Implications for Asia

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/015/810/original/ChartForeignInvestor.png?1478147665" class="editor-image img-responsive" data-smartkarma-image-id="15810"></figure><div class="content-caption">Foreign Investors are Top Shareholders (Source: JPX)</div><h2>Summary</h2>Foreign investors now form the largest cohort of investors in Japanese stocks, according to Tokyo Stock Exchange data.  Yet given Japan's deflationary dynamic, Japanese equities have demonstrated a tendency to disappoint investors in terms of Return on Equity.  "Why Hold Japan?" is a question that recurs among investors - in particular during cyclical downturns. Although there remains a degree of confidence in "Abenomics", uncertainty in…

Foreign Investors are Top Shareholders (Source: JPX)SummaryForeign investors now form the largest cohort of investors in Japanese stocks, according to Tokyo Stock Exchange data.  Yet given Japan's deflationary dynamic, Japanese equities have demonstrated a tendency to disappoint investors in terms of Return on Equity.  "Why Hold Japan?" is a question that recurs among investors - in particular during cyclical downturns. Although there remains a degree of confidence in "Abenomics", uncertainty in…

Why Hold Japan, Part I: Relative Tax Regimes

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

We publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found at <a href="https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping" target="_blank">https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping</a> &amp; <a href="https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sector" target="_blank">https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sector</a>The Timeline<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/015/357/original/mmp1.JPG?1477455972" class="editor-image img-responsive" data-smartkarma-image-id="15357"></figure>Model portfolio – revisiting our tactical idea, How has it panned out so far?<ul><li>
Our selected stocks from the Dry Bulk sector generated a return of 8.7% (28%…</li></ul>

We publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found at https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping &amp; https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sectorThe TimelineModel portfolio – revisiting our tactical idea, How has it panned out so far?
Our selected stocks from the Dry Bulk sector generated a return of 8.7% (28%…

Maritime Model Portfolio - Early Call on Dry Bulk Stocks Offsets Initial Losses

Japan

Mitsubishi Electric Corporation develops, manufactures, and markets electronic equipment.  The Company's products include industrial machinery, heavy electric machinery, data communications systems, electronic devices, and consumer electronics.

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Mitsubishi Electric (6503 JP)

Why Hold Japan, Part II: Comparative Valuation Among G7 Economies

"Why Hold Japan?" is a question that recurs among foreign investors, now the greatest cohort of investors in Japanese stocks. The question tends...

Naomi Fink

US Election Global Implications: Top Six Issues

Donald Trump has been elected as the next US president. However, unlike Clinton, Trump did not comprehensively outline his domestic and foreign...

Control Risks

The Trump Presidency: Implications for Asia

On Asia, as with many other topics, US president-elect Donald Trump’s campaign rhetoric tackled taboo subjects and hinted at major departures from...

Control Risks

Why Hold Japan, Part I: Relative Tax Regimes

SummaryForeign investors now form the largest cohort of investors in Japanese stocks, according to Tokyo Stock Exchange data. Yet given Japan's...

Naomi Fink

Maritime Model Portfolio - Early Call on Dry Bulk Stocks Offsets Initial Losses

We publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found...

Drewry Maritime Financial Research

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