Even with an ongoing trade war between the world's two biggest economies, and a weak domestic market, some Japanese investors suggest going long on next-generation technology stocks.
Sumitomo Mitsui Trust Asset Management Co.'s Next Generation Connectivity Fund has seen its total net assets surge more than 40 percent in five months, to ¥374.6 billion ($3.5 billion) as of Aug. 30. The fund, nicknamed "The 5G," has returned 19 percent this year, beating 96 percent of its peers. While it invests primarily in U.S. companies such as Altice USA Inc., Kyoto-based Murata Manufacturing Co. has the 10th-largest weighing at 2.9 percent.
Analysts have long touted 5G, which promises transmission speeds that are 100 times faster and reduce lag to milliseconds, as a ripe target for equity investment. While some related stocks have already seen big gains, 5G will be "an attractive investment area for a long time," according to Hirochika Oono, executive officer for business development at Sumitomo Mitsui Trust AM.