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Fund Manager View: Long Japan and up the European yield curve

In this video, manager Neil Richardson of the Standard Life Investments Global Focused Strategies Fund, explains why he sees selective opportunities in Japanese equities. He also gives his view on the rationality of the European yield curve.

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Dylan Emery

 

  • Richardson believes there is more to come for equities from further deflation of the yen and action from the Japanese government in terms of reform.
     
  • As a counterweight if this view doesn’t materialise, the fund is short the Japanese retail sector, which is trading on a 10-year P/E high relative to the index, even though another sales tax hike is scheduled for 2017.
     
  • The fund has a European yield curve steepener because Richardson believes the market’s long-term view on the European economy and inflation is far too pessimistic. 

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