While Japanese equities have been in ascent, we believe ongoing governance reform could add even more lift.

Japan’s equity market appears to be entering the next phase of a two-decade structural transformation: Like a jumbo jet heading toward cruising altitude, we believe that ongoing growth-oriented governance and capital-management reforms may encourage Japanese companies to further improve return on investment and accelerate earnings growth.

This article explores why we believe further governance reforms may support long-term value creation and present potentially attractive opportunities for active equity managers.

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