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BOJ Rate Cut No Solace for Top Japan Fund That's Staying in Cash

  • Central bank unveiled negative-interest-rate policy on Friday
  • J Flag's Osezawa expects more market volatility to follow
Updated on

J Flag Investment Co., an investment advisory firm which helps run among the top five funds in Japan, says the Bank of Japan’s move to negative interest rates won’t assuage investor anxiety or damp volatility in the nation’s stocks.

The firm, which advises on 25 billion yen ($210.8 million) in assets, boosted cash last year and has no plans to get back in the market because it expects stocks to remain volatile over the next three to six months even after the central bank lowered its interest rates to minus 0.1 percent on certain holdings. J Flag’s long-only fund rose 24 percent in 2015, the fourth best-performing fund among 26 Japan-focused peers tracked by Eurekahedge Pte.