Fri, Oct 21, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p