Abenomics Is Raising the Risk Appetite of Japanese Investors
With money flowing into equity mutual funds, Nikko sets a record with an Americas fund launch.
By Allen T. Cheng
Its one of the biggest questions in global finance today: Will the aggressive reflation strategy of Prime Minister Shinzo Abe succeed in ending Japans nearly 20 years of deflation?
Global investors and analysts are divided on the issue, but Charles Beazley, the chairman and CEO of Nikko Asset Management, says Abenomics is already changing the behavior of Japanese investors.
Shortly after Prime Minister Shinzo Abe was elected in December and embarked on policies to inject massive liquidity into the economy to defeat deflation and kickstart growth, Nikko Asset Management launched a new fund designed to give investors exposure to economies in the Americas. The Nikko Gravity Americas Fund pulled in $3 billion from retail investors in just eight weeks, making it the largest U.S. equity-oriented fund launch ever in Japan, and more than 10 times larger than Nikkos average new fund.....