Japan-based Mizuho Global Alternative Investments Ltd. predicted assets to climb to US$2 billion by the end of the business year. The forecast was made in relation to the rise in hedge fund demand from local pensions.
Mizuho, a unit of Mizuho Financial Group Inc., concentrates on funds with no less than two years of track record and US$500 million assets under management. The investment arm currently offers around seven funds that specifically targets Japanese corporate pensions.
The investment unit of Japan's third-largest bank based on market value garnered US1.7 billion by the end of June 2013. The amount placed Mizuho with global alternative asset managers which offer funds that invest in multistrategy hedge funds and bank loans, said Mizuho CEO Manabu Ando in an interview.
The company also plans to provide alternative investments options such as infrastructure funds and private equity by the end of this business year in March 2014, added the CEO.
"We're seeing growing appetite for yield-seeking products," remarked Chief Investment Officer Shin Kubo in the same July 23 interview. "We're starting to face a turning point in the direction of bond yields, so demand for investments that can withstand rising bond yields is growing."
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