War Pushes Japan Equity Fund Into Cash, Eyes Re-Entry in Banks

A top-performing Japan equity fund has cut exposure to cyclical stocks and increased cash levels amid heightened uncertainty surrounding the Iran war, and is now waiting for the moment to get back into bank and industrial shares.

Liontrust Japan Equity Fund, which is usually fully invested in Japanese equities, has increased its cash position to about 6% after the breakout of hostilities in February, said Thomas Smith, a London-based portfolio manager who oversees the fund of about ¥15.84 billion ($99.4 million).