Tuesday, 27 January 2015
Last updated 13 hours ago
Nov 6 2008 | 11:16am ET
Japanese pension funds are bumping up their alternative investments buckets while emptying out their domestic equities portfolios in an attempt to diversify their holdings.
According to a new survey by JPMorgan Asset Management, 69.7% of pension plans said that they are trimming equity allocations mainly in domestic shares, while 51.5% plan to shift into alternative assets such as hedge funds and private equity.
The survey showed Japanese pension funds' investments in alternative assets were concentrated in absolute return products, such as funds of funds, with a participation rate of 79%, which is higher than the 59% in the U.S. and 42% in Europe. Japanese investors, which traditionally have not invested in private equity and real estate, are now showing interest in the two asset classes as well as infrastructure and commodities.
Nearly half of the respondents surveyed managed assets of more than US$1 billion.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…