Legg Mason adds sterling-hedged share class to Shiozumi Japan fund

Legg Mason plans to unveil a sterling-hedged share class for its top-performing Japan Equity fund to protect investors from currency volatility, as the Bank of Japan (BoJ) unveils a fresh stimulus package.

The BoJ announced last week it will taken more aggressive measures to kick-start growth by doubling its inflation target from 1% to 2%. From January next year, the bank will begin buying ¥13trn ($146bn) of mostly short-term government debt each month until its inflation target is met. It also hopes the measures will weaken its currency, with the dollar rising to a 2.5-year high against the yen last week of ¥90.25. Investors’ anticipation of Japan’s latest easing policies have seen the yen fall 8% against the dollar over the past two months. Legg Mason said it expects the fund’s ...