Santander increases exposure in Japan

Santander has moved from an underweight to a neutral position in Japan in eight funds as fears of negative GDP subside.

Head of multi-manager Tom Caddick and senior fund manager Toby Vaughan have increased exposure to Japan in the £147m Santander MM equity fund, £212m MM balanced fund, £59m MM growth fund, £60m MM cautious fund, £651m balanced portfolio fund, £558m cautious portfolio fund, £217m global equity portfolio fund and £187m international equity portfolio fund.

The increased exposure is through segregated mandates and holdings in the Jupiter Japan income fund.

Caddick says concerns about the effect of the March tsunami on GDP are subsiding.

He says: “The impact of GDP growth is a longer-term concern but a lot of that has been seen in valuations.”

Skerritt Consultants head of investments Andrew Merricks says: “The firm has an overweight position in Japanese equities due to the positive outlook. It is a risk but moving into this slowdown, Japan was outperforming and we hope that it will continue to outperform.”