In a recent discussion, Miyako Urabe, the manager of the JPMorgan Japanese Investment Trust, highlighted the significance of digitalization as a central theme in Japan’s investment landscape. Despite Japan being a few years behind Western countries in technological advancements, Urabe emphasized that the nation is moving in the same direction, albeit with a delay. She discussed the tech trends she supports and provided specific stock examples, while also explaining the importance of investing in Japan. Urabe pointed out that corporate governance reforms and emerging from deflation are key attractions for investors. She noted that Japan is experiencing a corporate governance revolution, marked by increasing share buybacks and restructuring plans. Additionally, the country is finally seeing inflation and wage growth after years of deflation, which could boost the domestic economy. Urabe also detailed her investment process, which includes a 98-question risk assessment focused largely on environmental, social, and governance (ESG) factors. Her portfolio, consisting of 50 to 60 holdings, emphasizes sectors such as digitalization, automation, gaming, and defense. She stressed the importance of having a local presence in Japan, given the limited sell-side coverage, and highlighted the value of face-to-face meetings.
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