Guy de Blonay is looking for an re-entry point for Japanese financials after reducing the Jupiter Financial Opportunities fund’s exposure to the country ahead of the recent correction.
De Blonay had 12.1 per cent of his £521m fund in Japanese financials at the end of March. This was reduced to 9.2 per cent by the end of April and was then taken down by roughly half ahead of the correction still affecting the Japanese market.
Japanese stocks have sold off strongly in recent weeks as investors were spooked by the suggestion the US Federal Reserve could start to slow its $85bn-a-month bond-buying programme and fears of a Chinese hard landing resurfaced. The Nikkei share average is now down 20 per cent from where it was two weeks ago.
De Blonay says: “We try to be in the right places at the right time and hopefully avoid difficult places in the world when they unfold – such as Japan as the correction carries on.
“We have already reduced our exposure [to Japan] quite dramatically and are looking to re-enter this market as soon as we find a bit more comfort about the length of the correction and valuation.”
The Jupiter Financial Opportunities fund’s most recent factsheet shows Sumitomo Mitsui Financial and Sumitomo Mitsui Trust Holdings were two of its top 10 positions at the end of April. Mitsubishi UFJ Financial and Mizuho Financial have also been Japanese holdings of de Blonay.