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Edward J. Rogers From Komfie Manalo, Opalesque Asia:

Japanese pension funds are expected to increase its current asset allocations from weighting between zero and 3% to between 5% and 7% into alternative investments, a move that would benefit hedge funds, said Ed Rogers head of research and investment firms Rogers Investment Advisors, Wolver Hill Asset Management, and Wolver Hill Advisors in the latest Opalesque Japan Roundtable.

The roundtable was sponsored by law firm Bingham McCutchen and Eurex and took place in May at Bingham's Tokyo office.

Rogers made the statement as he discussed the significant trends he observed in Japanese pension funds system over the last year.

He explained that an increase of asset allocations by these pension funds to up to four percentage points would flood the alternative industry with a significant amount of cash. "Keep in mind that we are talking about a $3.5 trillion industry, so that will be a huge move in assets. A lot of money is coming into the alternatives space from Japan, and some of that money will be domestically placed. In fact, it could be a significant portion as investors move from long-only Japan exposure into a hedged Japan product. Japan-focused managers will benefit from this shift," Rogers said.

Rogers made the statement......................

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