Sumitomo Life plans to boost foreign bond investment without FX hedge, sees limited yen gain risk
TOKYO (Reuters) -Sumitomo Life Insurance plans to step up investment in foreign bonds without currency hedge in the six months to March as it sees limited risk of a stronger yen, a top investment planning official said on Tuesday.
Japan's fourth-largest insurer also plans to increase holdings of domestic bonds as well as foreign stocks and bond funds, Toshio Fujimura, general manager of investment planning, told reporters.
Following is a summary of Sumitomo Life's investment plan for the half year to March.
-- Plan to increase holdings of foreign bonds without currency hedge by a few hundred billion yen. It invests in U.S. and Asian markets.
-- Plan to reduce foreign bond investment with currency hedge by about 100 billion yen ($0.88 billion) while continuing to focus on credit products.
-- Plan to increase foreign stocks and funds, including bond funds and alternative assets, possibly by a few hundred billion yen. In the last half year, the firm has increased holdings in those assets by 250 billion yen.
-- Expect U.S. inflationary pressure to gradually subside in 2022, allowing the Federal Reserve to hold off raising interest rates until 2023.
-- Plan to increase yen bond holdings by about 100 billion yen, buying super-long Japanese government bonds.
($1 = 113.70 yen)
(Reporting by Hideyuki Sano)
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