Institutional Investors

Japanese pension funds mull hedge funds


As funding ratios for Japanese pension funds deteriorate and plan executives are looking to de-risk their portfolios, hedge funds are once again moving to the fore as the number of products being offered to institutions is rising.

Japanese pension funds that say they plan to alter their investment policies over the next 12 months are more likely to say they are looking to reduce risk than to report they are changing their policies to seek out higher returns, according to Taeko Sumiyoshi, a consultant with Greenwich Associates.

The number of Japanese institutions planning