Tue, May 31, 2016
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

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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU