The MSCI AC Asia ex Japan (AxJ) Index rose by 1.3% in US dollar (USD) terms, outperforming the MSCI AC World Index and bringing year-to-date returns to 31.1%. This was the eighth straight month of positive returns.
The release of the second quarter data on aggregate Japanese corporate profits confirms my twelve-year theme about improving corporate governance in Japan and how investors should not worry about the slow domestic economy.
Our equity portfolio manager who specializes in India concludes that reforms should have a very positive effect on that country’s growth.
“Global investors and corporations should adhere to the model that political spats are no reason to get overly frightened or paralyzed.”
John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com
The MSCI AC Asia ex Japan (AxJ) Index rose by 5.3% in US dollar (USD) terms, outperforming the MSCI AC World Index and bringing year-to-date returns to 29.4%.
We think Japanese companies are poised for a pickup in capital expenditure, led by productivity enhancing investments.
In a survey conducted by the Nikkei in March 2017, 80% of respondent companies indicated that they were either planning or considering the implementation of productivity enhancing investments.
The ageing world presents significant savings and productivity challenges to this and subsequent generations of investors and workers. Change will no doubt remain a constant, as it has been throughout the last two centuries in particular.
The MSCI Asia ex Japan (AxJ) Index rose by 1.6% in US dollar (USD) terms. Year-to-date (YTD), the index returned 22.8%, outperforming MSCI World by over 12%.
Our top Japanese Equity staff, including our CIO, report on how Corporate Governance remains on a strong upward trend, which should boost alpha for active managers and beta for the overall market via improvements in ROE and shareholder distributions.