New fund to provide investors with Japanese government bond exposure – The Armchair Trader

Asset Management One International, the overseas arm of one of Japan’s largest asset managers, is launching a new actively managed Japanese fixed income fund in Europe, betting that rising yields and a shift in monetary policy will revive global appetite for the country’s long-overlooked bond market.

The Japan Government Bond Plus UCITS fund, launched by Asset Management One, comes as investors reassess Japan after the Bank of Japan’s historic move away from ultra-loose monetary policy. The group, which oversees roughly $495bn in assets globally, said the strategy is believed to be the only major actively managed Japanese fixed income fund broadly available to investors in both the UK and continental Europe.

For much of the past two decades, Japanese interest rates remained anchored near zero – and at times below it – leaving many international investors indifferent to the country’s bond market. Several Japan-focused fixed income products disappeared as demand waned and yields failed to compensate for currency and duration risks.

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