Investing in Japan: What’s changed and what’s next

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews Matthew Brett, manager of the Baillie Gifford Japan Trust and the Japanese Fund, to discuss the future of Japanese investments. They reflect on the changes in Japan over the past 40 years, from its dominance in exporting to economic stagnation, and shift their focus to the next decade. Matthew highlights the evolution of investment opportunities from financials and car companies to technology and internet-related businesses. He identifies key sectors for growth, including internet services, automation, and cosmetics, driven by rising wealth in Asia. The conversation also covers Japan's leading role in robotics, the increasing importance of dividends from Japanese companies, and the divergence between the perception and reality of Japan as an investment destination, noting its unique development and increasing shareholder focus.