In June 2023, the Japanese government published a revised version of the implementation plan for Prime Minister Fumio Kishida’s ‘new capitalism’ initiative. The original 2022 version, titled ‘Grand Design and Action Plan for a New Form of Capitalism’, had outlined ambitious goals calling for increased investment in people, start-ups, green and digital transformations, science, technology and innovation.
These investments were intended to both foster economic growth and solve social problems, such as the long-term stagnation of workers’ wages and climate change. The 2023 revision builds on the original plan by establishing a more concrete strategy to increase wages, improve productivity and achieve a virtuous cycle of sustainable growth and equitable income distribution.
Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors.