Year-to-date, the WisdomTree Japan Hedged Equity Fund (DXJ) is beating the S&P 500 by nearly 300 basis points, as of September 30. That's an impressive feat when considering the U.S. dollar is in the midst of a lengthy slumber. Clearly, that's not hampering the performance of the famed Japan ETF. Outperformance is old hat for DXJ. For the five years ending September 30, the WisdomTree ETF beat the unhedged MSCI Japan Index by a margin of roughly 5-to-1 while providing slightly better-than-double the returns ...

Group 1 - Japanese stocks are leading gains in Asia, with the Nikkei reaching an all-time high following the ruling party vote that positions Takaichi to become the next leader [4][6] - Takaichi's pro-growth policies are a focus for investors, raising expectations for a return to Abenomics, which includes easing monetary policy and expanding fiscal policy [6][7] - The Bank of Japan (BOJ) is expected to delay rate hikes, contributing to a weaker yen, which is seen as beneficial for the markets [9][10] Group 2 - Takaichi's victory signals a shift towards right-wing policies, appealing to younger voters and potentially increasing defense spending [5][12] - There is a historic significance in Takaichi becoming Japan's first female Prime Minister, with expectations of a record number of women in her cabinet [6][8] - Analysts express caution regarding the sustainability of the current market rally, emphasizing the need for clarity on Takaichi's policy agenda [19][20] Group 3 - The Japanese government faces challenges in unifying the ruling party and addressing economic issues, with Takaichi needing to navigate a complex political landscape [14][24] - Takaichi's hawkish stance on China and her nationalist agenda may create tensions in regional relations, particularly with South Korea and China [12][26] - The upcoming economic policies and their impact on corporate earnings will be crucial for market performance in the near term [19][38] Group 4 - The Indian IPO market is set to surpass a record $5 billion in October, driven by significant offerings including Tata Capital's debut [3][48] - The primary market is attracting foreign investors, contrasting with a net outflow in the secondary market, indicating a shift in investor sentiment [53][54] - The long-term sustainability of the IPO boom in India is questioned, with concerns about market saturation and the need for continued retail investor participation [61][62]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Japanese Equities - **Key Themes**: The presentation discusses macroeconomic and microeconomic forces driving Japanese equities, including nominal growth, U.S. tariffs, political changes, corporate governance reforms, and industrial competitiveness in a multipolar world [1][5][6]. Core Insights 1. **Strong Nominal GDP Growth**: - Japan's nominal GDP is projected to grow significantly, with forecasts indicating a rise from 480 trillion yen in 1995 to 3,400 trillion yen by 2027 [9]. - Morgan Stanley's TOPIX forecast is set at 2,900 points as of June 2026, with a base case EPS growth of 185 million yen for December 2025 [10][12]. 2. **Impact of U.S. Tariffs**: - The U.S. tariffs and investment packages are influencing Japanese stocks, with a focus on the cumulative excess return on TOPIX for stocks sensitive to tariffs [27][30]. - Stock price gains post-U.S.-Japan tariff agreements have shown weak performance support, indicating potential volatility in the market [30][35]. 3. **Political Landscape Changes**: - The focus of uncertainty is shifting from external pressures, such as tariffs, to internal political dynamics, including public opinion on leadership and fiscal policies [47][51]. - The government fiscal balance is improving, which may influence future investment strategies [54]. 4. **Corporate Governance Reforms**: - Ongoing reforms are expected to enhance shareholder returns and capital efficiency, contributing positively to the market outlook [7][20]. 5. **Sector Preferences**: - A barbell strategy is recommended, focusing on export-oriented manufacturing and domestic demand-oriented non-manufacturing sectors [20]. - Specific sectors such as pharmaceuticals, IT services, and construction materials are highlighted for their growth potential [20][22]. Additional Important Insights - **Focus List Performance**: The focus list of stocks reflects a cautious view on large external demand stocks while being bullish on domestic demand growth stocks [22][23]. - **Market Dynamics**: The analysis includes cumulative fund flows, indicating a trend of net purchases in cash equities by overseas investors, suggesting a positive sentiment towards Japanese equities [42][46]. - **Infrastructure Investment**: Upcoming government spending on infrastructure is anticipated, which may further stimulate economic growth and investment opportunities [61]. This summary encapsulates the critical insights and data points discussed in the conference call, providing a comprehensive overview of the current state and future outlook of the Japanese equity market.

Core Viewpoint - Planet Based Foods Global Inc. is undergoing significant leadership and governance changes to enhance operational performance and rebuild investor confidence [1][2]. Leadership Changes - Supreet Sidhu has been appointed as the new Chief Financial Officer, succeeding Emrah Petorak, who is stepping down from the Board of Directors [2]. - Beata Jirava has been appointed as an independent director, contributing to the strengthening of the board [2]. Governance Reforms - The company has filed a petition with the Supreme Court of British Columbia to address the timing of its Annual General Meetings (AGMs) for the financial years ending December 31, 2023, and December 31, 2024 [3][4]. - The petition seeks court approval to host the 2023 and 2024 AGMs concurrently by December 31, 2025, and to retroactively deem the company compliant with AGM requirements once held [10]. Financial Context - The company faced historical financial constraints due to a decline in consumer interest in plant-based meats post-pandemic and an unsustainable cost structure [4]. - These challenges have been addressed through recapitalization, restructuring, and the introduction of a refreshed executive team [4]. Commitment to Governance - The steps taken by the company reflect its commitment to transparency, good governance, and sustainable value creation for all stakeholders [5]. Company Overview - Planet Based Foods Global Inc. focuses on sustainable ingredients and plant-based solutions, aiming to contribute to a cleaner and healthier global food system [6].

Investment Rating - The report indicates that the investment rating for the Korean market is currently underweight, reflecting lower valuations compared to peers and a need for earnings growth to broaden out [14][16]. Core Insights - The Korean market is characterized by its cyclical nature, heavily influenced by both the US and China markets, with a constant coupling and decoupling dynamic [11][32]. - The KOSPI index has shown significant sectoral performance variations, with IT and Financials leading the market, while other sectors like Materials and Consumer Discretionary have underperformed [20][23]. - The report anticipates a gradual recovery in domestic demand starting from the second half of 2025, with an expected GDP growth of 1.1% for the year [33][34]. Summary by Sections Market Performance - The KOSPI has experienced a year-to-date performance of 32.4% in 2025, recovering from a -9.6% performance in 2024 [18][26]. - Foreign investors have been net sellers in 2025 but have shown net buying activity since May [26][29]. Sector Analysis - The IT sector constitutes 36% of the KOSPI index and has performed well with a 32.4% increase year-to-date [20]. - The Financials sector has also shown strong performance, with a year-to-date increase of 49.4% [20]. - In contrast, the Materials sector has seen a decline of 41.2% in 2024, indicating significant volatility [20]. Economic Indicators - The report highlights that Korea continues to trade at lower valuations compared to Japan and China, with a focus on improving return on equity (ROE) [14][16]. - The Bank of Korea has lowered the policy rate to 2.5% and is expected to implement a larger supplementary budget in the second half of 2025 [37][38]. Earnings Growth - Earnings growth needs to broaden out, with the current consensus operating profit growth for the KOSPI at 10.0% for 2025, which is below historical averages [23][44]. - The report notes that consensus earnings are being adjusted down, reflecting a cautious outlook for the upcoming periods [44][46].