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Japan Post Bank To Launch Hedge Fund

Japan Post Bank is set to launch a $1.5bn hedge fund, according to reports from the FT.

The fund, which is due to launch in October, will be run a group of people recruited from Goldman Sachs, Barclays, Fidelity and one global hedge fund, according to the article.

The Japanese-based bank announced plans last year that it would build out its alternatives business. According to reports it has around $1.85tn in AUM with 40% of that in a satellite portfolio, which contains alternative investment assets.

According to a recently published three-year business plan, the bank’s holding company Japan Post Holdings has a net profit target of ¥410bn by 2020, however, last financial year’s results of ¥460.6bn were stronger than the original target, which was set to reflect poor uptick in the banking and insurance arms.  

The company is still trying to recover from its heavy losses following the acquisition of Australian logistics company Toll Holdings in 2015.

The Eurekahedge Japan Hedge Fund index returned 12.91% last year. It is down -2.14% this year to date, but had a strong January.  The index reflects the performance of underlying hedge fund managers who invest exclusively in Asia.