TOKYO :Japan's Dai-ichi Life Insurance plans to increase holdings of yen bonds in the six months to March and has no plan to reduce foreign bonds in the current market environment, a top investment planning official said on Tuesday.
The core company of Dai-ichi Life Holdings expects the dollar to gradually rise against the yen, supported by a growing interest rate differential between the two countries, said Akifumi Kai, general manager of investment planning.
"The current dollar/yen is favourable for foreign bonds without currency hedge. We expect a gradual fall in the yen and, at this point, we have no plan to reduce our position pre-emptively," Kai said.
Following is a summary of the firm's investment plans:
- Dai-ichi plans increase holdings of yen bonds to reduce interest rate mismatch between its assets and liabilities.
- It expects the dollar to gradually rise against the yen, to stand at around 115 yen in March, versus 114.00 yen on Tuesday.
- The firm does not plan to reduce its holdings of foreign bonds without currency hedge at this point.
- Dai-ichi expects the Federal Reserve to start raising interest rates in the second half of next year, in line with current market expectations.
- Company plans to increase investments in alternative assets for diversification and yield enhancement.
(Reporting by Hideyuki Sano; Editing by Christina Fincher)