Japanese pensions are selling domestic bonds as Prime Minister Shinzo Abe’s efforts to spur inflation stoke concern rising interest rates will erode the value of their holdings, a JPMorgan Chase & Co. survey showed.
Retirement funds held 29 percent of their assets in Japanese bonds at the end of March, down from about 31 percent the previous year, a survey by JPMorgan’s Tokyo-based asset management unit showed. Alternative asset holdings including hedge funds increased 2.3 percentage points to 11.8 percent, according to the survey, which was based on 128 pension plans overseeing a total 11.7 trillion yen ($117 billion).
