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Australian Retirement Trust banks on yen upside

Heather Ng
ART has built its largest overweight position in the Japanese yen in years as it bets the Bank of Japan will hike rates faster than markets expect.
Australian Retirement Trust banks on yen upside
Key Points
  • ART is overweighting Japanese equities and shifting to inflation hedges to capitalise on expected BOJ rate hikes.
  • The fund diversifies beyond peers by holding Asian currencies like the Korean won and Taiwanese dollar to target AI growth.
  • State Super warns that Japan's massive debt and fiscal stimulus keep the yen weak despite expected tightening.

Australian Retirement Trust (ART), Australia’s second‑largest pension fund, has taken a contrarian bet on the Japanese yen, building its biggest overweight position in years as it wagers markets are underestimating the Bank of Japan’s willingness to raise rates.

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