Skandia has raised its £848m global dynamic equity fund’s exposure to Japan from a neutral to an overweight position as it expects Japanese firms to benefit from the weakening yen.
Portfolio manager Francois Zagame has moved to a 1 per cent overweight position in the fund. He has been adding to Japan since February.
Zagame says: “I expect the weakening yen to lead to the relative outperformance of Japanese equities against other equities in the next three to six months.”
Investment Quorum chief investment officer Peter Lowman says: “Investors need to be aware that while the market is going up, you could be looking at a loss in currency terms, so investors should hedge back into sterling.”