What comes next for Japan? Oleg Kapinos, Head of Global Distribution Strategy at Asset Management One

Japan is entering a potentially decisive chapter for investors. After decades marked by deflation, conservative capital management, and persistent valuation discounts, the country’s political, economic, and market landscape is beginning to shift in meaningful ways.

In this interview, we speak with Oleg Kapinos, Head of Global Distribution Strategy at Asset Management One, about what lies beneath the headlines. From Prime Minister Takaichi’s pro-growth agenda to the Tokyo Stock Exchange’s governance reforms, we explore whether Japan is finally creating the conditions for a sustainable market re-rating.

We discuss why many Japanese companies still trade below book value relative to US and European peers, and whether rising share buybacks, improved capital discipline, and stronger shareholder focus can help close this long-standing value gap. The conversation also covers the end of the ultra-low interest rate era and what it means for Japanese banks, profitability, and value-focused investors.

Finally, Oleg shares his perspective on broader forces reshaping Japan’s market structure – rising wages and inflation, shifting attitudes toward foreign M&A and private equity, and the growing role of the JISA system.

Activate the subtitles from the bottom right corner of the video

• 0:34 - How might Prime Minister Takaichi’s pro-growth policies impact Japan’s earnings, markets, and investor sentiment?
• 2:01 - Why do many Japanese companies still trade below book value relative to peers in the US and Eurozone – and what catalysts could finally drive a re-rating?
• 6:11 - To what extent are the Tokyo Stock Exchange’s governance reforms — including the surge in share buybacks – helping to close Japan’s long-standing value gap?
• 8:08 - What does the end of the ultra-low interest rate era mean for Japanese banks, profitability, and the outlook for value-oriented investors?
• 11:14 - Are there key indicators investors should focus on when assessing the fund?

Enjoy the interview!