‘I invest £2.5bn in the world's most surprising economy'
After decades of deflation and economic stagnation, Japan has reached an inflection point.
The Bank of Japan has raised interest rates twice since July to around 0.5pc, marking a major shift from negative rates. At the same time, corporate governance reforms are finally gaining traction. These initiatives encourage listed Japanese companies to improve shareholder returns by investing for future growth and distributing the cash they have hoarded for many years.
Emily Badger, who co-manages the Man Japan CoreAlpha fund alongside Jeffrey Atherton, Adrian Edwards and Stephen Harget, believes corporate governance improvements are a major boon for investors looking to snap up cheap Japanese shares.
She explains why Japanese car makers look attractive, even though the sector is overshadowed by the threat of President Donald Trump's tariffs. The fund manager also tells Telegraph Money why Japanese property companies, like Mitsubishi Estate, look cheap.
Over the past three years, the Man Japan CoreAlpha fund has returned 44pc versus a sector average 20pc offered by rivals.
How do you invest?
We have a value tilt and take a contrarian approach to investing in Japanese large caps. We go against the herd and invest in stocks that are unfashionable, where we think valuations look excessively depressed. We look to buy assets the market wants to buy, they just don't know it yet.
What is your outlook for Japanese car makers?
We are optimistic about the auto sector. Last year, concerns about increased competition from China and the potential impact of tariffs weighed heavily, so with that in mind, we felt it was one of the most contrarian areas within the Japanese market and therefore a big opportunity. For example, in August of last year, we built a position in Toyota [which is held alongside Honda and Nissan].
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
12 hours ago
- Reuters
Dollar gains before Ukraine peace talks, Fed policy in focus
NEW YORK, Aug 18 (Reuters) - The dollar gained on Monday as U.S. President Donald Trump prepared to host talks on ending Russia's war in Ukraine, and traders pared bets on a September rate cut before a speech on Friday by Federal Reserve Chair Jerome Powell. Trump will meet Ukrainian President Volodymyr Zelenskiy on Monday before holding talks with the leaders of Britain, Germany, France, Italy, Finland, the European Union and NATO, the White House said. The European leaders were heading to Washington to show solidarity with Ukraine and to press for strong security guarantees in any settlement of the war in Ukraine. Traders are also focused on Powell's appearance later this week at the U.S. central bank's annual economic policy symposium in Jackson Hole, Wyoming for any new indications on whether a rate cut is likely next month. Powell has said he is reluctant to cut rates on expectations that Trump's tariff policies will lead to higher inflation this summer. Traders pared bets on a cut at the Fed's September 16-17 meeting after producer price inflation was hotter than expected in July. They had ramped up bets on a cut after consumer price inflation data for last month showed limited pass through from the trade levies. Fed fund futures traders are now pricing in a 85% probability of a September rate cut, after last week briefly fully pricing in a move. Powell is unlikely to lock himself into a monetary path before seeing August's round of data. 'I don't think that he can be definitive after being so cautious for so long. But I do think he has a clear opening on the labor market,' said Lou Brien, strategist at DRW Trading in Chicago. 'If the labor market weakens, he can move on that without having to wait for inflation, and that has historically been the way the Fed goes. They talk tough on inflation. They react to the labor market. The last jobs number was weaker than expected, the revisions were weaker than expected, and that makes it more than one report,' Brien said. The euro was last down 0.21% on the day at $1.1673. Against the Japanese yen , the dollar strengthened 0.46% to 47.85. Sterling weakened 0.1% to $1.3538. In cryptocurrencies, bitcoin fell 1.66% to $115,764.
Scottish Sun
13 hours ago
- Scottish Sun
Popular Glasgow city centre restaurant to close in weeks & fans are ‘gutted'
A new time schedule is in place until the restaurant closes NEW CHAPTER Popular Glasgow city centre restaurant to close in weeks & fans are 'gutted' A MUCH-LOVED Glasgow Japanese restaurant will close its doors in weeks due to rising costs. But bosses have promised loyal diners that a new project is launching soon. 3 The restaurant opened in 2018 3 It's built up a loyal fan base Advertisement 3 Bosses are opening a new Clydeside Containers project Mikaku, on the city's Queen Street, is shutting up shop after seven years of serving up a 'slice of Tokyo' in Scotland. Known for its colourful interiors and innovative menu, Mikaku has been a staple of Glasgow's hospitality landscape since it opened in 2018. Over the years, it has built a loyal customer base and welcomed thousands of guests through its doors. Advertisement The decision to close Mikaku comes as the team behind the restaurant shifts focus to their next chapter – the launch of Clydeside Containers, a new riverside street food and drink destination opening on Glasgow's waterfront. Director Nathan Sparling said: "Closing Mikaku was not an easy decision. "It has been a truly special place for both our team and our guests, and we are incredibly proud of what Mikaku has achieved. "From celebrating Ramen Week with £1 bowls, to launching one of Glasgow's most innovative cocktail menus, to introducing a real Robata Grill to the city for the first time – Mikaku has been about bringing something bold, different, and authentic to Queen Street, seven days a week. Advertisement "The memories created here, and the community that has grown around it, will always be a huge source of pride." Nathan said the restaurant has been hit by difficulties, which are partly to blame for the closure. He said: "Like so many venues in Glasgow and across the UK, we've faced the well-documented challenges in hospitality – from rising costs and staffing pressures, to shifts in consumer behaviour. Award-winning UK restaurant chain shuts ALL its sites as it goes bust after nearly a decade in business "The recent rise in National Insurance contributions has added even more pressure, strangling independent operators like us at a time when the sector is still recovering. "These wider challenges have been a significant factor in the decision to close, allowing us to refocus our efforts and resources on the exciting opportunity ahead at Clydeside Containers.' Advertisement Fans are 'gutted' about the news. One said: "Sad to hear.' A second said: "How rubbish." And another commented: "This is so sad to hear. My husband and I will definitely be there for our 11th wedding anniversary meal when we go to Glasgow." Mikaku will close on September 14 and in the meantime will open Wednesday to Sunday, before moving to a Thursday to Sunday schedule from August 28. Advertisement Staff will be offered opportunities to relocate within the wider business
Glasgow Times
13 hours ago
- Glasgow Times
Mikaku in Glasgow city centre to close doors after seven years
Mikaku, a much-loved Japanese bar and restaurant on Queen Street, will shut on September 14, 2025. Known for its immersive 'slice of Tokyo' experience and colourful interiors, Mikaku opened in 2018 and welcomed thousands of guests through its doors. (Image: Image: Newsquest) The decision comes as the team behind Mikaku has decided to shift focus to their next chapter – the launch of Clydeside Containers. The Clydeside Containers will be a new riverside street food and drink destination opening on Glasgow's waterfront. Nathan Sparling, director of Mikaku, said: 'Closing Mikaku was not an easy decision. "It has been a truly special place for both our team and our guests, and we are incredibly proud of what Mikaku has achieved. From celebrating Ramen Week with £1 bowls, to launching one of Glasgow's most innovative cocktail menus, to introducing a real Robata Grill to the city for the first time – Mikaku has been about bringing something bold, different, and authentic to Queen Street, seven days a week. The memories created here, and the community that has grown around it, will always be a huge source of pride. "But like so many venues in Glasgow and across the UK, we've faced the well-documented challenges in hospitality – from rising costs and staffing pressures, to shifts in consumer behaviour. The recent rise in National Insurance contributions has added even more pressure, strangling independent operators like us at a time when the sector is still recovering. These wider challenges have been a significant factor in the decision to close, allowing us to refocus our efforts and resources on the exciting opportunity ahead at Clydeside Containers.' (Image: Image: Newsquest) It comes after Nathan told the Glasgow Times back in April this year, that he only had 30 days to try and save his business as it faces "unsustainable pressures". He said skyrocketing costs, unreliable public transport, city centre parking issues and the Employer National Insurance rise have piled on and are affecting restaurants across the city. Nathan also said that Mikaku had to put prices up in the last year because of rising supplier costs. He said changes like the LEZ has meant suppliers had to change their vehicles in order to be compliant with the cost being passed onto the customer. READ NEXT: Iconic TV quiz trio announce Glasgow show as part of 2026 reunion tour Mikaku will adjust its opening hours for the final weeks of service. From August 20, the restaurant will open Wednesday to Sunday, before moving to a Thursday to Sunday schedule from August 28 until the final day of service on September 14.
