Japan

JAPAN - The Bank of Japan's decision to end its long-running zero interest rate policy, raising rates to 0.25%, could see pension funds rejig their asset allocation, accelerating the diversification of fixed income portfolios.

JAPAN - Pension funds have been advised to treat their riskier assets with caution in light of speculation that the Bank of Japan is about to raise interest rates.

JAPAN - A surge in investor confidence and a supportive macro backdrop have been tipped as factors which could lead Japanese equities to outperform over the longer term.

JAPAN - The Japanese government is implementing a new law to encourage employers to increase the mandatory retirement age from 60 to 65 and to better coordinate the beginning of pension coverage with later retirement ages.

JAPAN - Institutional investors must retain consistent exposure and seek out core funds with good risk-adjusted performance in order to take advantage of the opportunities the Japanese market offers, according to Investec Asset Management.

JAPAN - Cordea Savills, the European property fund manager, has set up a joint venture fund management company with the Japanese trading house, Mitsui & Co Ltd, and Japanese fund manager, Kenedix Inc, to create property funds for Japanese investors.

JAPAN - Insight Investment has appointed ex-Lazard executive Jeff Tanaka to head up its its new expansion into Japan.

JAPAN - Offshore and foreign institutional investors have become more important to Japanese equity brokers because of their trading behaviour and increased activity in the Japanese equity market.

JAPAN - Despite concerns over funding levels and the need to increase investment returns, Japanese institutional investors are increasing their activity in government bonds, according to research published by Greenwich Associates.

JAPAN - About 25% of all Japanese DB plans will be closed to new employees by 2008, Greenwich Associates research has found.