Why you shouldn’t overlook Japanese small-cap stocks

Globally, small caps are often considered undervalued compared to large caps. But does this valuation discount exist for Japanese small-cap stocks? We spoke to Max Godwin, Portfolio Manager in the Japan Equity focus team at Eastspring Investments. He outlines what a discount looks like and what the themes within the Japanese small-cap market are that offer attractive long-term growth potential. Godwin further points to the key challenges and opportunities for the Japanese small-cap market over the next 12-24 months.