Growth opportunity beckons for Japan equities as pandemic forces changes

Areas for improvement

The Covid-19 pandemic is forcing drastic changes upon Japanese society.

We believe that this will serve as a catalyst for Japanese corporations to address inefficiencies and improve returns, presenting them with a new growth opportunity.  Inefficiencies Japanese companies need to address  The return on equity (ROE) of Japanese companies provides a good example of their standing relative to US and European peers. Shareholders of Japanese companies have been suffering from low ROE with the gap between their US and European peers steadily widening. The low ROE shows that governance reform and attempts to improve capital efficiency have not borne much fruit...