Translation of a survey article originally published in AL-IN magazine vol. 54, December 2019.
AL-IN, a magazine for institutional investors in Japan, conducted its first survey about the use of multi-asset strategies among its corporate pension subscribers in 2013. The 4th and latest survey was conducted in November 2019. What does a multi-asset strategy mean now and how does it address today’s more challenging investment landscape?
This is Part 1 (of 2) of the survey’s findings.
How prevalent is multi-asset investment among Japanese corporate pensions?
How many corporate pensions have embraced multi-asset investing? As shown in Chart 1, fifty-two investors (50.0%) responded they "already have multi-asset allocations," twelve (11.5%) said "it is on the table," and forty (38.5%) said they have "no plans to adopt [the strategy]." These responses differed very little from those in the previous survey in 2017 (49.4%, 12.4%, 38.2%, respectively).
When did respondents adopt the strategy? Six investors (10.7%) said "before 2013," six (10.7%) said in FY2013, eight (14.3%) in FY2014, eight (14.3%) in FY2015, nine (16.1%) in FY2016, six (10.7%) in FY2017, ten (17.9%) in FY2018, and three (5.4%) in FY2019.* The data show Japanese institutional investors steadily adopting the multi-asset strategy, with no apparent annual bias.
* The Japanese fiscal year begins in April and ends in March. FY2013 is April 1, 2013 to March 31, 2014.
The FY2019 data covers only April to end of November 2019.