One of Asia’s best-performing bond funds says the yen is the "main vehicle” investors should target when the last anchor to the world of rock-bottom interest rates lifts off.

"If you’re talking about pivots, this is the mother of all pivots,” when the Bank of Japan decides to tweak monetary policy, said Omar Slim, a money manager at PineBridge Investments. "The way that the market will respond to this, the obvious one will be potential appreciation of the yen.”

The yen has climbed more than 11% from its October nadir amid government intervention, hopes for a slowing of U.S. rate hikes and speculation over the possibility of a shift from the BOJ some time next year. The risks of such a pivot became more entrenched on Wednesday following a report officials were weighing the possibility of a policy review in 2023 — a precursor of policy changes in the past.