JP Morgan Asset Management’s outperforming Japan equity fund sees growth opportunities in the information and communications sector as the country lags in adopting key tools like e-commerce and digital payment.
The firm’s $6.6 billion Japan Equity Fund is up 39% so far this year, beating almost all of its peers, according to data compiled by Bloomberg. The Topix index rose 2.7% over the same period. The fund’s success has stemmed from its investments in stocks related to e-commerce and other areas that benefited from pandemic-induced demand, according to Alexander Treves, an investment specialist at the asset manager.
"Although people have an image of Japan as a high-tech society, the penetration rate of internet, e-commerce and digital payment is quite low compared to other countries,” Treves said. "We find lots of businesses in this place which aren’t cyclically attractive, but have multi-year growth prospects.”