The Japanese corporate pension fund is preparing for a drop in the global economy that its CIO believes will spur opportunities in both public and private markets.
Corporate pension fund managers often lack formal investment skills and experience with asset management, says a CIO whose professional profile is a rare case in Japan.
The Japanese government aims to create an “asset management nation” including reforms of corporate pension funds. But not all agree that reforms are universally needed.
With alternatives now constituting a larger portion of pension funds' portfolios, they are closely assessing fixed income opportunities, according to a recent survey.
Japanese corporate pension funds are increasingly investing in alternative assets in order to generate income, as the proportion of their portfolios dedicated to domestic assets decreases, a survey shows.
With its relatively small size, the corporate pension fund works hard to draw attention among external managers for its investment needs, its CIO tells AsianInvestor.
With unstable markets and a relatively low yen, the Japanese corporate pension fund faces plenty of challenges — but a multi-pronged investment strategy for next year is taking form.