Thu, Apr 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Japanese pensions double their investment in hedge funds

Wednesday, September 26, 2012

Beverly Chandler, Opalesque London: A new report from Cerulli Associates finds that over the last five years, Japanese institutional investors have acquired new risk appetites while maintaining their core conservative approach. The Pension Fund Association estimates that Japanese pensions allocate an average 4.9% of assets to hedge funds as of March 2011, an increase from 2% in the 2007-2011 period. The report says: "This development is creating a more nuanced marketplace and is opening opportunities for a larger variety of asset managers".

With assets totalling US$13.2 trillion as of March 2012, Japanese institutions have Asia's largest pool of institutional money but have offered little outsourcing opportunities to global asset managers because they tend to prefer fixed income and domestic assets. However, in a picture that is familiar throughout the world, things are beginning to change as pensions, faced with increased pension benefit payments in an ageing population, have begun portfolio diversification in hopes of getting higher returns, while controlling risks.

The report finds that corporate pensions have been fastest at evolving their investment approach. "In March 2011, Japanese equities allocation fell below 20% of total corporate pension assets for the first time. In 1999, this asset class was on average 36.5% of the total, but has slid to 18.9% in 2011. The fall wa......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  4. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  5. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac