Legal & General Investment Management's multi-asset manager Justin Onuekwusi has begun to unwind his Japan trade on concerns Abenomics is no longer effective.
Onuekwusi (pictured), who manages the LGIM multi-index range, has held a long-running theme of Abenomics in the portfolios and has been overweight to the region for most of 2016. Abenomics, implemented by Prime Minister Shinzo Abe in 2013, consisted of 'three arrows' of fiscal stimulus, monetary easing and structural reform. However, Onuekwusi now doubts if Abenomics has been effective and whether 'helicopter money' is the only option left. "The original Abenomics was the policy of three arrows, but it is clear the Bank of Japan is holding off on injecting stimulus," he said. "...
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