Asset Management Awards for Excellence 2017 – Best Fund Provider – Japan Equity

Eastspring Investments

Mabel Chan, Co Head, Intermediary Business

Mabel Chan
Co Head,
Intermediary Business

For many markets, 2016 was a tale of two halves, and nothing better epitomised this than Japanese equities. After a 15.6% plummet in the first half of the year, the market experienced an invigorated resurgence delivering 21.9% in the second half.

The positive reversal was widely attributed to the bullish outlook that a stronger dollar and higher US rates from increased spending could weaken the yen and improve export earnings.

The market’s dichotomous performance in 2016 best illustrates the value of active investing, which allows for dynamic reallocation to avoid major drawdowns and increase participation during upswings. And in light of the Bank of Japan’s active purchasing of exchange-traded funds (ETF) – the central bank nearly doubled its ETF-buying commitment in August from JPY3.3 trillion (US$29 billion) to nearly JPY6 trillion (US$50 billion) per year – active management is all the more critical to ensure that portfolio valuations are not being inflated by stimulus.

Such a backdrop bodes well for Eastspring and its bottom-up approach anchored around valuations to take advantage of market mispricing. The firm’s Japanese equity capability is underpinned by a deliberately compact team, designed for optimisation and boasting an average 19 years of investment experience. Investment capabilities aside, Eastspring’s focus on delivering client-oriented solutions spans value-added services such as product training and panel discussions with investment experts.

Eastspring Investments’ accomplishments have not gone unnoticed by Asia’s private banking gatekeepers, who have selected the firm as this year’s Best Fund Provider – Japan Equity.