Japan reports 1.5 per cent GDP growth
Japan saw its economy return to growth in Q3 following three consecutive quarters of decline, government estimates said.
The economy saw 1.5 per cent of quarter-on-quarter GDP growth, partly attributed to the restoration of supply chains disrupted by the 9.0 magnitude earthquake and subsequent tsunami in March.
The growth in the economy was slightly faster than expected by economists.
In June, Investment Adviser published regional asset allocation data for the period of February 28 to April 30, supplied by Morningstar, which showed fund managers aggressively cutting their weightings towards the market.
The biggest Japan cut came from Paul Schofield’s Allianz RCM’s £40.7m Customised Global Equity fund, which cut its position by 8.2 per cent to 13.7 per cent, according to Morningstar.
Other big reductions to Japan over the period came from Martin Currie’s Ruairidh Stewart and Duncan Goodwin, who cut their exposure to just 0.52 per cent on their £62m Global Energy fund - a 6.5 per cent drop in exposure.
They also carried out a 6.5 per cent cut to just 1.9 per cent on their £139.9m Global Resource fund.
BlackRock’s head of global equity Richard Turnill, a former economic adviser to the Bank of England, retained an underweight in Japan during the period, saying even the cheap valuations then did not tempt him into the market.
His £180.4m Global Equity fund was 2.6 per cent underweight its MSCI World index benchmark weighting for Japan, holding only Japanese carmaker Nissan.
Mr Turnill’s $320.7m (£196.6m) BGF Global Income Equity fund had no exposure to Japan at all.