Factbox: Japan Post Insurance to keep holdings of foreign bonds flat in FY2021/22

Japan Post Insurance

21/04/2021 10:24

TOKYO, April 21 (Reuters) - Japan Post Insurance  7181.T 
plans to keep its holdings of foreign bonds steady in the
financial year through March and to reduce that of domestic
fixed-income products, a top investment planning official said
on Wednesday.
    Japan Post Insurance, also known as Kampo, may reduce its
investment in foreign bonds without currency hedge, as the
company thinks the forex market remains volatile, the official
also said. 
    
    Following is a summary of the firm's portfolio investment
plan for the current financial year. The firm holds about 70.40
trillion yen ($650 billion) of assets, including 5.22 trillion
yen in foreign currency assets, as of September.
        
    FOREIGN BONDS
    The company plans to keep the holding of its foreign bonds
flat. In the financial year that ended on March 31, it increased
the holdings of foreign bonds with currency hedge while trimming
those without currency hedge.
    Hiroyuki Nomura, the head of investment planning at the
firm, said the attraction of U.S. bonds have increased but there
remain risks of further downside risk in their prices given the
prospects of a strong economic recovery. 
    He also said the company remains cautious on investment
without currency hedge, saying the forex market remains
volatile.
    
    DOMESTIC BONDS
    The company expects the holding of its yen bonds to fall
this financial year. But Nomura said domestic bonds are becoming
attractive because they are steady thanks to the Bank of Japan's
yield curve control policy.
    
    OTHER ASSETS
    The firm plans to increase the holding of alternative
assets, especially domestic properties, infrastructure equity
funds and private equity funds.
    It plans to keep the holdings of both domestic and foreign
shares steady but could buy if there are major market
corrections. 
    
($1 = 108.22 yen)

 (Reporting by Hideyuki Sano; Editing by Ritsuko Ando)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))