More Japanese corporate pension funds are turning to alternatives to help meet meeting their financial obligations. At the start of FY2011, alternatives represented 8.1% of corporate pension portfolios. At the start of FY2014, that number had risen to 11.1%.
“The pensions have increased allocation to strategies that are expected to generate stable income returns with medium risk. They have selectively introduced non-traditional assets and strategies,” reported Infovest21.
Among the alternatives considered by Japanese corporate pensions, absolute return strategies are by far the most popular. This year, 73.4% of corporate pensions introduced absolute return strategies. The next most popular strategy was insurance at 28%.