The push for management openness: Why activists are targeting Japan

Promoting greater dialogue with shareholders

The chaos caused by Covid-19 this year has left an indelible mark on global economies. Financial markets experienced historic falls in value as the crisis reached a tipping point in March and whole countries were plunged into public lockdowns.

While the vast majority of global markets have since rebounded, Japan is among the few that have struggled to make up the entirety of the losses. Nonetheless, that is not to say it has cut off the opportunity for investors. In the equity markets we have found Japan stands out on a number of measures, with one key element being attractive valuations. Its valuation metrics stand out relative to the rest of world, particularly when it comes to areas such as enterprise value to EBIT, dividend yields, and the strength of company balance sheets. Indeed, there are some companies in the broad...