Japan: Opportunities after the earthquake

Tue Oct 18, 2011

In the first of an occasional series about under-represented strategies within the UCITS wrapper, Absolute UCITS editor Joy Dunbar explores the potential opportunities for Japanese equity UCITS strategies.

Japan is one of the smallest single-country strategies in the absolute return UCITS equity universe. There are just eight Japanese equity strategies listed on the Absolute UCITS database, comprising six long/short and two market-neutral funds.

The Japanese economy has long been associated with long-term decline – stagflation, deflation and lost decades. But with European and US economies going through a period of deleveraging and fiscal tightening, the Japanese economy appears to be recovering following the earthquake and tsunami earlier this year.

Karori Tsujino from JP Morgan Asset Management

Japan is expected to have the highest growth among developed countries – according to Karori Tsujino, the portfolio manager of the JP Morgan Japan Market Neutral Fund, which uses the UCITS structure.

"This is, in part, because of the earthquake," she says. "The US and European countries are talking about spending cuts which will negatively affect GDP growth. More and more we are...

ISSN: 2151-1845 / CDC10004H

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