Portfolio Manager Masa Takeda discusses the Japanese government’s response to the ongoing coronavirus pandemic, a weakening Yen, valuations and new holding, Hitachi.
Deep-rooted cultural traditions of hard work and perseverance have contributed to Japan’s high-quality products, superior manufacturing, and technological innovations, resulting in a durable global competitive advantage.
Japanese equities are currently trading at compelling valuation levels compared to other developed equity markets around the world and relative to their own historical averages. We believe the Japanese market deserves a closer look.
When looking at foreign countries that most commonly comprise foreign funds, Japan has performed well while continuing to offer compelling valuations.
When investing in Japanese businesses, we believe it is imperative to select a manager who is immersed in the culture and can perform in-depth, company-specific research to build a concentrated portfolio of Japanese companies that can outperform a benchmark and weather volatility.
Daikin Industries is a global leader in heating and air conditioning products and systems. The company’s investments in the latest technology, partnership philosophy, and well-established blueprint for international expansion make Daikin a dominant company in this growing industry.
Portfolio Manager Masa Takeda provides an update on the pandemic in Japan and discusses companies that may benefit from the pandemic and the government’s carbon neutrality goal. He provides an update on valuations, returns on equity, and changes to holdings within the Fund.
Portfolio Manager Tad Fujimura shares his insights on Japan’s economic recovery, small-cap valuations, attractive sectors, and notable additions and deletions from the portfolio.
As factory automation systems appear in factories throughout the world, Japanese companies are slated to be major beneficiaries - both as producers and users of robotics.
Masa Takeda of Tokyo-based SPARX Asset Management Co., Ltd., subadvisor to the Hennessy Japan Fund, discusses economic activity during the pandemic, the new Prime Minister’s initiatives, current valuations, ESG investing, and his outlook for Japanese investing in 2021.