Japan, similar to commercial property funds is a market which, to a certain degree is all about timing. Except, with Japan that time has been long in coming. Anyone with funds in Japan may have been waiting a long long time to recoup losses. However, recently some returns have been noticed.
But what we tend to overlook is that Japan has some fantastic brands, for example says The Times (06.03.10) 'industrials, breweries and electronic components', world-class companies that have since 1995 invested heavily in the emerging Asian economy. With Japanese stocks looking cheap, it is possible that a market rebound is on the horizon.
However, some do question this and ponder as to why such companies have not reflected their status in the markets. It seems to you should not be taken in by income funds as Japanese dividends are traditionally lower than their western counterparts.
P/e ratios (measure of value):
Europe and UK: 12
US: 14
Japan: 17
Japan, ironically comes out as the most expensive.
Best funds to watch:
1. Neptune Japan Opportunities Fund
2. Schroder Japan Growth Investment Trust
3. Gartmore Japan Absolute Return Fund
4. GLG Japan CoreAlpha FUnd
5. Invesco Perpetual Japan Fund
6. Schroder Tokyo Fund
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