ALTERNATIVES

Japan Post Bank ramps up push into alternatives

Allocation to hedge funds of funds more than triples in past 3 months

The latest fiscal year results for the ¥207.2 trillion ($1.9 trillion) Japan Post Bank showed the push into alternatives started last year continuing to focus on hedge funds.

As of March 31, the close of the fiscal year, the bank had ¥468.2 billion, or about $4.2 billion, invested in hedge fund-of-funds strategies, ¥124.4 billion in private equity and ¥14.6 billion in real estate, a spokesman for the Tokyo-based bank confirmed in an email.

Three months before, the bank had ¥136.3 billion in hedge fund-of-funds strategies, ¥80.6 billion in private equity and ¥1.8 billion in real estate.

The bank’s long-term target for alternatives allocations is roughly 3% of its portfolio, or $57 billion.