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23 Oct 2015
JPY: Pension funds and toshin companies buying aggressively - Nomura
FXStreet (Delhi) – Research Team at Nomura, note that the Japanese pension funds and toshin companies continued to purchase foreign assets aggressively in September and they also accelerated domestic equity purchases.
Key Quotes
“Dip-buying demand by pension funds and retail investors remains strong, while lifers’ investment plans suggest they are also likely to be dip buyers of foreign bonds in the near future. In contrast, foreign investors sold Japanese equities at a record pace in September.”
“Insurance companies bought JPY242bn ($2.0bn) of foreign bonds, while purchasing JGBs and other domestic bonds. Banks bought foreign bonds aggressively (JPY3049bn or $25.4bn), the biggest amount since August 2010.”
“Trust banks, which manage pension fund money, continued to sell JGBs for the third month in a row. They sold JPY53bn ($0.4bn) of JGBs. In contrast, pension funds likely accelerated foreign equity purchases (JPY910bn or $7.6bn) and domestic equity purchases (JPY768bn or $6.4bn). They also continued to purchase foreign bonds (JPY192bn or $1.6bn). Pension funds’ portfolio shift is reaccelerating, as the weak price action in financial markets since mid-August should encourage them to purchase more risky assets for rebalancing.”
“Retail investors continued to purchase foreign assets via toshins (JPY777bn or $6.5bn). Retail investors also continued to purchase domestic equities for the third month in a row (JPY253bn or $2.1bn), the biggest amount since May 2006, suggesting strong dip-buying demand among retail investors.”
“Foreign investors sold Japanese equities at a record pace in September. They sold JPY2577bn ($21.5bn) of Japanese equities, the biggest amount ever.”
Key Quotes
“Dip-buying demand by pension funds and retail investors remains strong, while lifers’ investment plans suggest they are also likely to be dip buyers of foreign bonds in the near future. In contrast, foreign investors sold Japanese equities at a record pace in September.”
“Insurance companies bought JPY242bn ($2.0bn) of foreign bonds, while purchasing JGBs and other domestic bonds. Banks bought foreign bonds aggressively (JPY3049bn or $25.4bn), the biggest amount since August 2010.”
“Trust banks, which manage pension fund money, continued to sell JGBs for the third month in a row. They sold JPY53bn ($0.4bn) of JGBs. In contrast, pension funds likely accelerated foreign equity purchases (JPY910bn or $7.6bn) and domestic equity purchases (JPY768bn or $6.4bn). They also continued to purchase foreign bonds (JPY192bn or $1.6bn). Pension funds’ portfolio shift is reaccelerating, as the weak price action in financial markets since mid-August should encourage them to purchase more risky assets for rebalancing.”
“Retail investors continued to purchase foreign assets via toshins (JPY777bn or $6.5bn). Retail investors also continued to purchase domestic equities for the third month in a row (JPY253bn or $2.1bn), the biggest amount since May 2006, suggesting strong dip-buying demand among retail investors.”
“Foreign investors sold Japanese equities at a record pace in September. They sold JPY2577bn ($21.5bn) of Japanese equities, the biggest amount ever.”