Led by the giant government funds, Japanese pension schemes are gradually moving into global real estate and infrastructure markets. Search the site Search. In infrastructure, GPIF was looking to diversified investments in core and brown field infrastructure funds mainly in developed countries. Illiquid assets, especially high-yielding, income-generating assets, are attractive to Japanese investors. It was not untilafter building up its investment capability, that GPIF launched its asset manager registration system for alternative assets. Even corporations have rules against disclosing January-March results separately. But prolonged low interest rates has encouraging Japanese investors to seek higher yields from alternatives, including infrastructure, real estate and private equity.
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TOKYO (Reuters) - Japan's Government Pension Investment Fund (GPIF) is now able to hedge against fluctuation in the value of various. Japan's Government Pension Investment Fund, having long taken few safeguards against foreign exchange risk, is adopting currency hedging to contend with an appreciating yen, President Norihiro Takahashi told The Nikkei on Monday.
Takahashi, formerly of Norinchukin Bank, a lender.
Japan's $ trillion public pension fund has begun to put on hedges to protect against USD and EUR declines, according to a Nikkei report published yesterday. A hedge of that size will be swallowed up by the market but the signal it sends may lead others to follow.
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So, a lot of people are staying in Japan. He adds that some bigger and more sophisticated corporate funds have progressive chief executives who have ventured into alternatives, and are achieving adequate returns.
Advisers to Japanese pension funds say that part of the shift to alternatives is overseas exposure — both to access a much larger market and for geographical diversification.
It had interests in eight private REITs with diversified portfolios. Offer ends June 30th.
The GPIF's recovery from a record ¥ trillion loss during the "In such an environment, we think there is no other choice but to take on risks in assets such as stocks and GPIF currency hedging could help in downturn.
Illiquid assets, especially high-yielding, income-generating assets, are attractive to Japanese investors.
Muto agrees with Kawano on Europe.
Japan's GPIF now able to hedge against risk in various currencies president Reuters
Quarterly disclosures have a different significance from full-year disclosures. A second reason for interest in Europe is that there are no hedging costs when buying there.
Interest and demand is there, but there is a very big funding cost from yen to the dollar. He adds that some bigger and more sophisticated corporate funds have progressive chief executives who have ventured into alternatives, and are achieving adequate returns.