Wrestling with Japan

To what extent does Japan still merit its place in your portfolio?

Japan has been disappointing investors for 20 years and towards the end of 2009, it seemed they would abandon the region once and for all. The major institutions were laying off Japanese analysts and closing funds. The Merrill Lynch Global Fund Manager survey showed Japan’s popularity at a low point, relative to both the rest of the world and to its own history. Since then a number of multi-managers have moved overweight and it has been the top-performing fund sector this year. To what extent does Japan still merit its place in a portfolio? The macroeconomic situation would suggest Ja...