Wide range of Japanese investors continue allocations to hedge funds

Japanese institutional and high net worth investors continue allocations to hedge funds. But marketing and distribution of production in Japan requires patience and local knowledge.

Institutional and individual Japanese investors are increasingly willing to invest in hedge fund products. “There is a secular growth trend in demand for hedge funds, though level of appetite fluctuates with the relative performance of hedge funds,” says Hidehiko Hayashi, president of Man Investment Securities in Japan.

The demand stems from a low interest rate environment, underfunded pension plans and the demographic issues facing an ageing Japanese society and shrinking population, according