View more on these topics

Firms wait for cost decisions after Japan election

Advisers and fund managers say the Democratic party’s landslide victory in the Japanese general elections has not changed the immediate investment outlook.

The Democratic Party of Japan took 64 per cent of the votes in last week’s elections, while prime minister Aso’s Liberal Democratic Party won less than a quarter of the seats.

Schroders head of Japanese equities Shogo Maeda says all the polls predicted the landslide so the market has had plenty of time to discount the result. Maeda says: “Investors will be keenly watching to see which of the manifesto promises are actually implemented. It already seems clear that some of the higher-cost elements will be scaled back or abandoned and this may prove a popular move, given the growing unease over government finances.”

Jupiter Japan income fund manager Simon Somerville says the win will result in a redistribution of wealth and warns that the bureaucratic cost-cutting may not be enough to pay for these policies which may further inflate public debt and increase long-term interest rates.

Plan Invest Group managing director Michael Owen says: “I would say it is more a case of wait and see with Japan at the moment.”


Every Which? way to lose

Among the many things I have in common with IFAs is a love of the consumer group Which?

Iceland to pay back cash to UK

The Icelandic parliament has voted to repay more than £3bn to the UK and Dutch governments for the money they spent compensating savers in the Icelandic banks.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm