Sumitomo Life plans to boost foreign bond investment without FX hedge, sees limited yen gain risk (updated)
26/10/2021 07:53
(Adds detail)
TOKYO, Oct 26 (Reuters) - Sumitomo Life Insurance plans to
step up investment in foreign bonds without currency hedge in
the six months to March as it sees limited risk of a stronger
yen, a top investment planning official said on Tuesday.
Japan's fourth-largest insurer also plans to increase
holdings of domestic bonds as well as foreign stocks and bond
funds, Toshio Fujimura, general manager of investment planning,
told reporters.
Following is a summary of Sumitomo Life's investment plan
for the half year to March.
-- Plan to increase holdings of foreign bonds without
currency hedge by a few hundred billion yen. It invests in U.S.
and Asian markets.
-- Plan to reduce foreign bond investment with currency
hedge by about 100 billion yen ($0.88 billion) while continuing
to focus on credit products.
-- Plan to increase foreign stocks and funds, including bond
funds and alternative assets, possibly by a few hundred billion
yen. In the last half year, the firm has increased holdings in
those assets by 250 billion yen.
-- Expect U.S. inflationary pressure to gradually subside in
2022, allowing the Federal Reserve to hold off raising interest
rates until 2023.
-- Plan to increase yen bond holdings by about 100 billion
yen, buying super-long Japanese government bonds.
($1 = 113.70 yen)
(Reporting by Hideyuki Sano)
((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))