Sat, Jul 26, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

42% of Japanese institutional investors plan to increase their allocations to hedge funds

Thursday, September 22, 2011

Stefan Nilsson
Opalesque Industry Update - 42% of Japanese institutional investors plan to increase their allocations to hedge funds in the near term according to a new investor survey by HFC Advisory.

HFC Advisory, a Tokyo-based consulting and research firm, interviewed a wide range of Japanese investors between May and August for the Hedge Funds Club Japan Investor Survey 2011.

“Japanese investors are by far the most important hedge fund investors in the Asia-Pacific region. The survey shows that investments in hedge funds are growing and that pension funds in particular keep increasing their allocations. Japanese investors are active investors in global alternative investment products but I feel that hedge fund managers need to better understand the needs of Japanese institutions in order to access this large market,” said Stefan Nilsson, CEO of HFC Advisory and founder of the Hedge Funds Club.

Investor survey highlights

42% of the investor respondents plan to increase their allocations to hedge funds in the near term.

Japanese pension funds keep increasing their allocations to hedge funds. The average allocation to hedge funds among the pension fund respondents to this survey was 21%.

Equity long/short was the most popular hedge fund strategy to allocate to in 2010/2011 while the global macro/managed futures category is the most popular for planned allocations in 2011/2012.

Most investors allocate the majority of their money to liquid strategies but there is also a fair bit of investments in less liquid strategies such as credit and distressed as well as other more niche strategies.

63% of the survey respondents said that they do not use any investment consultants.

Funds of funds (FoF) are still alive and have a future in Japan. While there is an increasing trend to do more direct investments in hedge funds, 58% of respondents said they that they do both single manager strategies and FoF or just allocate to FoF.

The main concerns expressed about hedge fund investments were liquidity, transparency and fraud.

(press release)

Download full survey from Opalesque:Source

www.hedgefundsclub.com

BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag