The implications of Japan’s aging, declining population are misunderstood, catalysing a promising economic outlook that has one veteran investor and author wishing he was 23 again.
The Japanese state pension fund can dismiss its dethronement as the world’s largest asset owner, as relative rankings are immaterial to its marathon mission of delivering long-term returns.
The Japanese yen has depreciated sharply against the dollar, while Japanese equities hit record highs. Asset managers debate the currency’s path, BOJ’s policy action, and the outlook for Japanese stocks.
Instead of looking for safe haven assets, family offices in Hong Kong are diversifying their investments and identifying megatrends to keep their portfolios resilient.
Private market assets are making up larger shares of portfolios for diversification purposes, and lifers like Dai-ichi Life have ventured deeper into alternatives this year.
Many top Japanese life insurers, tempted by historically high yields, are nearing purchases of domestic government bonds, yet others are holding out for even more lucrative opportunities.
This week saw two alleged Japanese government interventions to support the yen against the US dollar. AsianInvestor asked market specialists at what levels the Japanese currency could stabilise.
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.
With significant firepower at their disposal, Asia Pacific's major asset owners are building new skill sets to expand into private debt opportunities and explore real assets beyond primary markets.