A Bright Future for Japanese Equities

Yutaka Uda, portfolio manager of the EI Sturdza Nippon Growth (UCITS) Fund discusses the opportunities available in the Japanese equity market over the short and long term.

Interview recorded 08/06/2018

Uda-san touches on the following subjects:
• Key growth areas for the Japanese economy in the next 2 to 5 years.
• Where he sees value in the short and long term.
• Will consumption tax have a negative effect on the Japanese market?
• What effect will the tightening of the Monetary Policy have on the Japanese economy?
• What levels will the market reach in the coming years?

Topics discussed include:
• Japanese Inbound Tourism
• Infrastructure Demand
• Labour Shortage
• Capital Expenditure
• Consumption Tax
• Japanese Monetary Policy
• Interest Rates & Inflation

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The views and statements contained herein are those of Evarich Asset Management in their capacity as Investment Adviser to the Nippon Growth (UCITS) Fund as of 08/06/18 and are based on internal research and modelling. This does not constitute independent research and under no circumstances should the information contained therein be used as a recommendation to buy or sell any security or financial instrument or service or to pursue any investment product or strategy or otherwise engage in any investment activity or as an expression of an opinion as to the present or future value of any security or financial instrument. Nothing contained in Evarich Asset Management’s views and statements are intended to constitute legal, tax, securities or investment advice. The views and statements contain “forward-looking statements”. All projections, forecasts or related statements or expressions of opinion are forward-looking statements. Although Evarich Asset Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct, and such forward-looking statements should not be regarded as a guarantee, prediction or definitive statement of fact or probability.

E.I Sturdza Funds Plc and its sub-funds, are Irish funds authorized by the Irish Central Bank. They are approved to the distribution in Switzerland by Finma. The Swiss representative and paying agent is Banque Eric Sturdza SA, rue du Rhône 112, 1204 Geneva / Switzerland. The prospectus, KIIDs, Articles of association, semi-annual and annual reports of E.I Sturdza Funds Plc can be obtained, free of charges, at the seat of the Swiss representative. The information contained herein is estimated, unaudited, may be subject to change and reflect the performance of the relevant funds during the period indicated. Any opinions or estimates expressed herein are at the date of preparation and are subject to change without notice. No such opinions or estimates constitute legal, investment, tax or other advice. The value of the funds and the income which may be generated from it can go down as well as up and therefore the investors must be able to bear the risks of a substantial impairment or loss of their entire investments. Past performance is no guarantee of future results. Performance data do not take into consideration commissions and costs charged at the time of issuance of the shares. This document is intended for information purposes only and is not intended as an offer or recommendation to buy, sell, or otherwise apply for shares in the funds.

Further insights

August 2018

Bank of Japan takes a more flexible approach to monetary policy

During the first half of July, the Japanese market declined on the back of concerns over trade frictions and the weakness of the Chinese market. This said, the market later started to recover following strong economic growth in the US and a depreciating JPY against the US dollar, as well as decreasing tensions surrounding trade frictions and fiscal policy announcements in China. 
August 2018

A beautiful summer clouded by trade war escalation

​In July, the trade war between the US and China escalated, resulting in the CNY falling to a 12mth low. During the month, the EU finalised a trade agreement with the US. At the same time, Turkey’s central bank refrained from raising rates, spreading risk concerns to Emerging Markets.