St James’s Place (SJP) has increased exposure to Japanese equities across multi-asset portfolios in its latest asset allocation rebalance.
The firm said it ‘modestly’ increased exposure, with allocations rising by approximately £940m.
The wealth manager said the move was inspired by the attractive diversification benefits Japanese stocks offer, having historically shown resilience during market downturns and different performance characteristics to other developed markets.
Ongoing corporate reforms in the east Asian country and fiscal support also provide a differentiated source of growth, the firm noted.
The increase was funded by cutting exposure to European equities.
The firm said it has implemented a new active, systematic approach within European equities.
It will use ‘rules-based signals’ to identify opportunities. The approach aims to complement existing active managers and is designed to provide an additional source of returns in a low-cost, liquid and risk-controlled way.
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The portfolio adjustments falls across its Polaris, Polaris Multi-Index and InRetirement fund ranges and are part of a regular portfolio review process. They are not a response to market events, the firm said.
Robin Ellis, director of multi‑asset portfolio management, said: “We are constantly assessing how different investments contribute to overall portfolio outcomes.
“Increasing our exposure to Japanese equities and introducing a systematic approach within European equities broadens the range of return drivers in portfolios and reflects our commitment to evidence-based portfolio construction.”
AloJapan.com