Japan managers lock horns over banks

Two top Japan equity managers are at odds over the country's prospects, with one declaring the "years of hurt are over" while the other forecasts "fiscal destruction".

Neptune’s Chris Taylor (pictured), manager of the £128m Japan Opportunities fund, is so concerned he has hedged the entire equity portion of the fund, selling the yen through one-year forward contracts. “Japan is on a one-way road to fiscal destruction. They have a debt to GDP ratio of 230%, compared to Greece’s 140%, and there is no way they can repay that in principle. As soon as the debt needs to be repaid or rolled over, that is your lot. There is no tax base to support these liabilities.” Although he said some companies have wised up to the government’s situation and invested sub...