MFA Blog

Recent Survey Shows Japanese Corporate Pensions Investing More in Alternatives

Posted on June 27, 2014

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%.

Read more about the changes in allocations at Japanese corporate pension funds online from Infovest21.