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Hedge-Fund Demand by Japan Pensions to Rise, Credit Suisse Says

Japanese corporate pension funds, with about 60 trillion yen ($760 billion) in assets, may triple their allocations to alternative assets as they seek to reduce risks and boost returns, according to Credit Suisse Group AG.

Typically, 2 to 5 percent of pension fund assets are in alternative investments including hedge funds, private equity and real estate, and this may grow to about 10 to 15 percent over the next two years, said Benjamin Happ, Hong Kong-based Asia-Pacific head of capital services in Credit Suisse’s prime services division.