A Japanese equity investment manager at major US asset manager Franklin Templeton told Nikkei that earnings per share at Japanese companies will continue to grow at an average annual rate of approximately 10% over the next several years. Comments from Chen Shiong Koo (チェン・ション・クー), who manages the fund, were also reported.
Franklin Templeton’s Japanese equity investment division told Nikkei that earnings per share (EPS) at Japanese companies is expected to grow at an average annual rate of approximately 10% over the next several years. The outlook is attributed to improving capital efficiency and expectations that corporate reforms in Japan will continue.
The company cited comments by Chen Shiong Koo (チェン・ション・クー), who manages the Templeton Japan Fund, saying that the sustainability of EPS growth will improve as Japanese companies review their business portfolios and capital allocation.
The article noted that Japan’s corporate reforms are considered large in scale by global standards, and conveyed the view that capital efficiency and long-term earnings capacity in the Japanese market are expected to improve.