Oppenheimer International Bond Fund has historically held around 15%-20% of its assets denominated in one of the largest currencies in the world, the Japanese yen. That shouldn't be surprising, after all Japan is the second largest issuer of debt in the world, behind only the U.S.

But now we've cut the Fund's yen exposure to almost zero.1 That's right, the yen is the biggest weight in our stated benchmark index, and we have almost none of it2 and we plan on having none of it for a while. It is one of our highest conviction bets in the portfolio. The yen has been one of the biggest movers in the currency world this year, losing 3% of its value against the U.S. Dollar as of January 18, and weakening almost 15% since the end of September 2012 (see the chart below). In our mind's the yen's fall isn't done, either, we think this is just the beginning of a longer, more significant structural trend of yen weakness.