The A$1.5 billion Talaria Global Equity Fund, which has no exposure to Australian shares and started the year with 17% invested in Japanese equities, is up 8.4% this year, versus a gain of 1.6% in the MSCI World ex-Australia Value Net Total Return USD Index that the fund uses as a guide. About a third of the fund’s growth has come from Japanese holdings, he said.
Japan’s impressive stock rally may cool in the second half of this year as the highly cyclical market is susceptible to an expected global economic slowdown, according to Melbourne-based Talaria Capital.
The world’s third-largest share market will likely end 2023 lower from current levels, as aggressive monetary tightening by major central banks finally causes global growth to weaken, hurting Japanese exporters, said Hugh Selby-Smith, the money manager’s co-chief investment officer. The benchmark Topix index has rallied 20% this year, after hitting the highest level since July 1990 earlier this month.
