Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • Consultants
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2023
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
Breadcrumb
  1. Home
  2. INVESTING
May 22, 2018 01:00 AM

Japan Post Bank plans $60 billion boost to alternatives investments over next 3 years

Douglas Appell
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    A replica post box on display at the Japan Post Holdings Co. headquarters in Tokyo.

    Japan Post Bank will boost its combined allocations to private equity, real estate, hedge funds and private debt by roughly ¥7 trillion ($64 billion) over the coming three years to offset an expected decline in yields on the Tokyo-based bank's vast holdings of Japanese government bonds.

    The ¥207.7 trillion bank's medium-term management plan for the three years through March 31, 2021, released last week, targets ¥8.5 trillion in alternatives investments by the close of that period, up from ¥1.6 trillion as of the March 31, 2018, close of its latest fiscal year.

    A JP Bank spokesman declined to provide precise figures for the bank's targets for each category of alternatives, but a bar chart in the management plan pointed to investments of roughly ¥3 trillion to real estate, ¥2.2 trillion to private equity, ¥2 trillion to hedge funds and ¥1.3 trillion to private debt.

    As of March 31, the bank reported ¥900 billion in hedge funds, ¥500 billion in private equity and ¥300 billion in real estate.

    The medium-term plan pointed to incremental additions to the bank's huge allocations to foreign bonds, which stood at ¥57.6 trillion at the end of March.

    The latest allocation targets point to an increased reliance on alternatives to power the Tokyo Stock Exchange-listed bank's earnings, with the combined ¥8.5 trillion total expected to come to 4% of its portfolio.

    Katsunori Sago, the ex-Goldman Sachs Group executive who built the bank's investment team over the past three years, said in an interview with Pensions & Investments in early 2017 that allocating 3% of Japan Post Bank's portfolio to alternatives would be sufficient.

    Earlier this month, Japan Post Bank announced that Mr. Sago, the representative executive officer, will retire around mid-June. Tokyo-based Softbank Group announced Mr. Sago will become a member of the firm's board of directors.

    According to the medium-term plan, alternative allocations are expected to deliver 11% of the bank's net interest income, up from less than 1% for the latest year.

    The bank's foreign credit holdings will contribute 63% of net interest income, down slightly from 64% for the fiscal year ended March 31.

    Japanese government bonds and related instruments are expected to account for just more than a quarter of net interest income, down from 36% for the latest fiscal year. Their weight in the portfolio, meanwhile, will fall to 55% from 61%.

    Related Articles
    Japan Post Bank ramps up push into alternatives
    Japan Post Bank poised to plow ¥100 billion into stocks
    JP Bank CIO plots a course through 'stretched' valuations
    Japan Post affiliates' cooperation limited to private equity 'for the time bein…
    Japan Post Bank departing portfolio investment chief appoints successors
    Japan's 'Big 2' becoming a less bountiful fee source
    Asian investors also diversifying their credit portfolios
    Recommended for You
    S&P_500_Index_Generic_i.jpg
    S&P 500 beats active large-cap funds in first half; smaller caps thrive
    Handful_of_100_dollar_bills_i.jpg
    High yield shines amid investor shift to private credit
    Ray_Dalio_Speaking_1550_i.jpg
    Temasek Trust initiative raises $777 million in pledges for Asia-based impact solutions
    Multiple Tailwinds Propel Private Credit
    Sponsored Content: Multiple Tailwinds Propel Private Credit
    Sponsored
    White Papers
    2023 Hot Topics in Retirement and Financial Wellbeing
    Bonds: Shaken, but Not Stirred
    Today’s rate cycle and US equities in target date portfolios
    A Study of Allocations to Alternative Investments by Institutions and Financial…
    Unlocking Hidden Value in Japan
    The Art of the Possible in Data Automation for Institutional Investors
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • Consultants
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2023
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars