Mitsubishi UFJ Kokusai Asset Management Co. is overweight in peripheral markets including Norway and its flagship Global Sovereign Open fund has raised allocations there over the past few months, according to executive fund manager Tatsuya Higuchi.

“You can’t find many countries like Norway, where the economy is in good shape and rates are going up,” said Higuchi, whose firm oversees the equivalent of about USD 130bn in assets. He’s also attracted to higher risk markets like Mexico, which offers yields big enough to help offset worries about trade tensions with the U.S.

The flagship fund’s allocation to Norway has more than doubled to 4 percent over the past year, compared with the benchmark FTSE World Government Bond Index’s weighting for the country of just 0.2 percent.