Natixis Shifts Equity Allocation from US to Japan

Natixis Investment Managers increased its allocation to Japanese equities on September 2, 2026, while simultaneously reducing its exposure to U.S. equities. The asset manager, which oversees approximately $1.5 trillion, based the shift on the belief that Japan's economic growth momentum and supportive fiscal and monetary policies provide a superior risk-reward profile compared to the United States.

Strategists at the firm noted that rising inflation in Japan is boosting corporate revenues and earnings. They view the Bank of Japan's normalization of monetary policy as a positive signal, a move that coincided with Japan's 10-year government bond yield reaching 3% for the first time this century.

Beyond the equity shift, the firm maintains a global underexposure to bond markets. This stance follows negative performance in longer-dated maturities and rising yields across the U.S., UK, and Australia. The firm's strategy prioritizes equity over bonds globally, arguing that growth momentum is the primary driver of current real interest rate increases.