European and Japanese equities failed to rise after central bank action
The Japanese yen hit a multi-year low of ¥125 to the dollar in June last year, a significant 40% decline from its peak of around ¥75 in October 2011. As a result, the weak Japanese yen drove corporate earnings to record highs in the last few years.
Reduces US dollar exposure
Shifts in currency and equity positions
Tilney Bestinvest has removed its currency euro and yen hedges in the belief that the macroeconomic factors driving weakness in the currencies have now subsided.
Japan is attempting to resurrect its economy, and bringing with it more tourists and eagerly awaited corporate governance reform, says Genzo Kimura, economist at SuMi TRUST
Renewed yen weakness could bring about a fresh global currency war resulting in a 'tidal wave of deflation' in China and the West, Société Générale's Albert Edwards has warned.
WisdomTree has brought two of its flagship currency-hedged ETFs to Europe to offer investors the option to hedge exposure to the euro and the yen.
Columbia Threadneedle's Sarah Williams argues the real value in Japan may now lie in stocks which are off the beaten track.
How far would yen have to fall?
The managers of the Ruffer investment company have cut their US dollar exposure further, even as the currency looks set for its best quarter in over 20 years.
Wealth managers are reducing their exposure to hedged share classes in their Japanese fund holdings, in the belief that further yen depreciation now looks less likely.
The managers of the Ruffer investment company have slashed their exposure to the US dollar on fears it is no longer fit to act as a hedge, and have moved into the Japanese yen instead.
The Shanghai stock market rebounded while the Japanese yen strengthened against the US dollar on the news the Bank of Japan will keep its asset buying programme unchanged.
Hideto Yamamoto, chief executive officer & chief investment officer at DIAM International, explores what Japan needs to do if the Topix is to pass 1,800 for the first time since 2007
With currency moves increasingly dominating financial headlines, Tilney Bestinvest's CIO has predicted hedging, not asset allocation, will be the key differentiator for investor returns next year.
Michael Hasenstab, manager of the $39bn Templeton Global Bond fund, provides his macroeconomic outlook for 2015.
Oliver Wallin, multi-manager investment director at Octopus Investments, has called for more providers to offer hedged share classes on their funds.
Japan's economy shrank more than initially estimated in the third quarter of 2014, according to revised gross domestic product (GDP) figures.
It has been a turbulent couple of months for policy makers in Japan.