Politics & Regulation

Japanese pension fund managers ‘too trusting’ with AIJ

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Pension fund managers might have been too trusting and failed to properly evaluate alternative investment strategies that AIJ Investment Advisors pursued on their behalf.

This was the assessment of some executives whose views AsiaHedge solicited from after reports emerged that Japan’s regulator, the Financial Service Authority (FSA), has found that the Japanese alternative investment manager is unable to account for nearly $2.5 billion of corporate pension funds that it was entrusted to manage.

Frank Packard, president of Triple A Partners Japan and an FSA-regulated investment advisor, says that looking at the situation from the outside, it seems that