324. Diversification potential from robotics to digital payments

Discover the complexities of Japan’s investment landscape with Karen See, co-manager of the Baillie Gifford Japanese Income Growth fund, as we discuss the market's oscillation between growth and value stocks, the impact of the weakening yen, and the Tokyo Stock Exchange’s recent corporate governance reforms. Karen offers insightful commentary on the implications for her fund and highlights the emerging opportunities in Japan’s evolving market, from automation and robotics to the accelerating digitalisation trend.What’s covered in this episode: The rotation from value and growth in JapanThe impact of the weak yenHow corporate reforms impact wider marketsWhat a weak yen means for corporates and investorsHow corporate reforms are influencing the financial sectorContinued appeal of SoftBankWhen share buybacks are a bad ideaManagement changes in Japanese companiesHow dividend payouts have evolved in JapanThe importance of growing dividendsWhy 50% in manufacturing is misleadingThe growing demand for automation The slow trend to digitalisation and digital paymentsHow Covid has accelerated cultural changeWhat the next 18 months could have in store for investorsMore about the fund: Launched in July 2016, Baillie Gifford Japanese Income Growth aims to benefit from the improving corporate governance in Japan, as more and more businesses move towards a progressive dividend-paying policy. The managers apply the same well-tested growth investing philosophy and process used by their other Elite Rated funds, combined with a focus on companies with the best dividend growth opportunities.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.