ART Bets Big on BOJ Rate Hikes with Record Yen Position

Australia's second-largest pension fund, Australian Retirement Trust (ART), has made a significant currency bet by building its largest overweight position in Japanese yen in years.

The move is driven by ART's conviction that traders are underpricing the Bank of Japan's willingness to keep raising interest rates.

ART is spreading its currency exposure across the yen, euro, and British pound, representing a deliberate pivot away from the US dollar.

The fund isn't limiting its Japan thesis to currency alone; in March 2026, ART increased its holdings in Japanese equities, with a focus on financial sector stocks that benefit directly from rising interest rates.