How policy is driving performance in Japan

Chris Smith, Co-Manager of the Polar Capital Japan Value Fund, explains how a record-breaking earnings season is reinforcing Japan’s structural shift and capital return policies, driven by rising shareholder engagement and a surge in share buybacks. He outlines the Fund’s focus on higher-quality cyclicals and mid-caps, Japan’s resilient long-term outlook despite tariff uncertainty, and why the market may be approaching a critical inflection point for valuation reratings.