RAM backs Japan as strong emerging market play

Investors searching for emerging market value with lower risk exposure should look to Japan, Resolution Asset Management says.

Resolution Japan fund manager Natasha Chetwynd says despite recent underperformance, Japan is still a ‘buy’.

She cites supportive valuations, strong dividend growth, rising share buybacks, positive earnings momentum and improving profitability as the main reasons to look at the Far East.

Chetwynd believes dividends could rise by more than 10% this year and in the future, with profits set to grow by an average 10 to 15%.

“There are currently very few buyers of Japan but there are plenty of reasons to invest there,” Chetwynd says.

“Japan is an attractive market in its own right but it also offers a cheap way to buy emerging markets growth; although it possibly offers less upside, it certainly offers less downside.”

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