Nippon Life is Japan’s biggest life insurer company. This company may post a 10% return on hedge fund due to market improvement. Nippon Life has 44 trillion yen assets and about 100 billion yen in hedge funds which is likely to improve this fiscal year in short and long term macro global funds.
This hedge funds are basically are basically private pools of money or say capital whose managers participate in profits from the speculation of whether the price of assets will rise or fall. This type of funds gained about 11% this year.
Last year Nippon Life had beared the loss of upto 15% compared to this year gain of 10%. Nippon Life on seeing the current market phenomena would keep its investments in hedge funds compared to its rivals who plan to decrease the allocation and like to achieve stable returns.
To make the hedge funds attractive investment option the insurer diverted the funds focusing Asia allocations. Focusing on Asia funds reduced the credit hedge funds and increased up the cash portion with the break down on Lehman Brothers which worsen the global situation.
The chief executives of Nippon said that even in times of recession they never stopped their exposure to the industry. In long run their aim is to realize the importance of diversifying the portfolio which would not change at any cost. This company invests in hedge funds through its asset management unit
Seeing the hedge fund managers are outperforming global benchmarks after suffering their worst year record. The Japan long short equities index has been gained up 12 percent in six months while the MSCI rose to 4.8 percent in this period.
Last year Nippon Life had beared the loss of upto 15% compared to this year gain of 10%. Nippon Life on seeing the current market phenomena would keep its investments in hedge funds compared to its rivals who plan to decrease the allocation and like to achieve stable returns.
To make the hedge funds attractive investment option the insurer diverted the funds focusing Asia allocations. Focusing on Asia funds reduced the credit hedge funds and increased up the cash portion with the break down on Lehman Brothers which worsen the global situation.
The chief executives of Nippon said that even in times of recession they never stopped their exposure to the industry. In long run their aim is to realize the importance of diversifying the portfolio which would not change at any cost. This company invests in hedge funds through its asset management unit
Seeing the hedge fund managers are outperforming global benchmarks after suffering their worst year record. The Japan long short equities index has been gained up 12 percent in six months while the MSCI rose to 4.8 percent in this period.
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