Innovative ‘new Japan’ companies targeted by JPM’s Japan investment trust (LON: JSGI)


Japan has been facing a population decline for several decades, with low birth rates and an aging population. The country’s fertility rate, which is the number of children born per woman, has been below the replacement level of 2.1 for many years. This has led to a shrinking and aging population, with fewer people of working age to support the elderly.

The Japanese government has implemented various measures to try and increase the birth rate, such as increasing childcare subsidies and providing tax breaks for families with children. However, these measures have not had a significant impact on the birth rate.

Japan has however been at the forefront of automation and robotics technology for several decades. The country has a long history of using automation and robotics in manufacturing, particularly in the automotive and electronics industries.

One of the ways Japan has tried to automate work is through the use of industrial robots. Japan has one of the highest densities of industrial robots in the world, with over 400,000 robots being used in manufacturing in 2019. These robots are used for tasks such as welding, painting, and assembly.

Another way Japan has tried to automate work is through the use of digital technologies such as artificial intelligence and machine learning. The country has a strong research and development base in these technologies, and has invested in areas such as autonomous vehicles, smart factories, and service robots.

Japan investment trust, JPMorgan Japan Small Cap Growth & Income (JSGI) attempts to tap into part of this. The trust invests in several so-called ‘new Japan’ companies, which are often geared towards solving the problems that an aging population presents.

In recent years, Japan has also focused on the development of “cobots” or collaborative robots, which can work alongside human workers to improve efficiency and safety.

In addition to the manufacturing sector, Japan has also been active in automating work in other industries such as agriculture, construction and healthcare, by using robots and digital technologies.

The government has also supported the development of automation and robotics through various initiatives and policies. For example, the “Robot Revolution Initiative” was launched in 2015 to promote the development and widespread use of robots in various industries.

Japan investment trust
, JPMorgan Japan Small Cap Growth & Income plc (LON:JSGI / JSGI.L), targets Japan income without compromising on Japanese growth opportunities. This Japan fund is an income investing opportunity that gives investors access to a diverse and fast growing sector managed by local managers. The Investment Trust offers a regular quarterly income without compromising on Japanese growth opportunities, by paying a higher dividend funded part by capital reserves as well as revenue returns.

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