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Reuters – Japanese corporate pension funds have been cutting their domestic stock holdings and buying more domestic bonds to avoid risky bets amid financial turmoil, a JP Morgan Asset Management survey showed on Tuesday.
Pension funds on average lost about 18.4 percent on their investments in the financial year that ended in March, the survey of 75 funds found.
Bloomberg – Japan’s attempts to end financial turmoil failed to lure hedge funds back to its swap markets, leaving premiums paid by domestic borrowers near a record, RBS Securities Japan Ltd. said.
Hedge funds, which lost more than $400 billion through withdrawals and market losses since June, pulled out of Japan’s swap markets after the failure of Lehman Brothers Holdings Inc. led to a seizure in global credit, said Tatsuo Ichikawa, a senior strategist at RBS in Tokyo. Japan’s banks were charged record premiums this month to swap London borrowing rates for those set in Tokyo as a slumping economy exacerbated concern about the health of the nation’s companies.
Bloomberg – The head of J-Power, Japan’s largest electricity wholesaler, wants to attract long-term investors to replace its biggest stakeholder, hedge fund TCI, which exited after seeking his ouster in a feud over corporate management.
“Investors such as pension funds, which seek stable returns in this time of financial turmoil, may be one of our preferred investors, in addition to individuals, who search for vehicles for long-term investment,” Yoshihiko Nakagaki, president of the Tokyo-based utility, officially known as Electric Power Development Co., said in an interview in Tokyo.
