Hepworth prepares Amity International for Japanese recovery

Ecclesiastical's Robin Hepworth has been adding Japan exposure to Amity International on the belief stock markets are due to recover from years of underperformance.

The manager has built a 4% position this year in his £76m ethical investment fund. “Our change in strategy comes after 20 years of underperformance. Where Japanese stocks have fallen by 70%, western exchanges are broadly flat,” he says. “Japan’s stock market fortunes could now be finally changing. While the value of Japanese stocks in terms of their price to earnings ratio remains high, with earnings depressed by the global recession, book values are compelling, with many companies trading at a significant discount. “Their continued high level of investment in research and developm...