Japan: The Case for Resilience

Resilience in Focus As post-Covid market effects ease, Japan growth equities have shown recent quarters of relative strength versus local and global benchmarks, reflecting past trends. With 25+ years in Japanese equities, we’ve seen quality growth companies demonstrate resilience, supported by strong balance sheets and disciplined management through varied markets. Post-Covid Market Distortions This strength is often overlooked. In the three years after Covid, performance — as in many markets — grew narrowly concentrated. In Japan, attention shifted to “cheap-Yen beneficiaries”, fuelled by currency weakness and flows exiting China, often mislabelled as “value” stocks. Enduring Growth Built on Innovation Japan’s growth story runs deeper. Positioned at Asia’s gateway — the world’s largest engine of population and economic expansion — Japan has long enabled technology and aspirational brands. Homegrown innovators and leading semiconductor companies have transformed a resource-poor archipelago into the world’s second-largest developed economy. They adapted, endured and thrived. Independent Thinking, Shared Expertise At Comgest, we’ve learned from that resilience. When we began investing in Japan, more than 30 peer funds targeted its growth names. Today, Morningstar lists just four funds — including ours —above JP¥100 billion with 3+ year track records. Supported by 40+ analysts and portfolio managers globally, our independence keeps us benchmark agnostic, enabling us to uncover quality companies others often overlook. On-the-Ground Insight Our 18-year presence in Japan has been critical to our success. While regulators pursue incremental governance reforms, we have long partnered with management teams sharing our long-term, quality growth vision — often trailblazers driving change throughout Japan’s modern history. Join Us Our webinar, Japan: The Case for Resilience, explores why we believe the next chapter for Japan’s quality growth companies is only beginning.