Five years ago, governance reform in Japan was largely a policy conversation. Today, it shows up directly in the decisions boards make: buybacks, cross-shareholding unwinds, and capital return targets that are actually met.

Despite this, a meaningful part of the Japanese market continues to trade as though nothing has changed, which is where we've concentrated the Japan Fund's research effort.

We look for companies where improved capital discipline is verifiable in filings and management conduct, not simply promised in an investor day presentation.