Hedge Funds Boom In Japan

There is currently a boom in marketing hedge funds and alternative investments in Japan. In 2003, Japanese pension funds have invested 237 BY or 3B$ in hedge funds in 2003 representing 7% of their investments in 2003. According to Ministry of Finance latest statistics, it is 5.85 TY or about 60B$ that has invested into "Caribbean" from January to November 2004, representing a 150% increase over 2003.
Main reason for the hedge funds boom are:

• - Recent liberalization of investment rules allows institutionals to invest in hedge funds. (For example, ).
• - Private investors face a lack of investment opportunities.- Past performance of securities or real estate investments for the last ten years has been disastrous while hedge funds and alternative investments have shown a relatively steady track record. (For example, Toshiba employees pension fund is investing 25% of its 300BY assets to alternative investments).
• - Creation of Japan focused hedge funds following the big success of opportunity funds and private equity funds such as Ripplewood and Carlyle
• - Numerous opportunities for investment that have also triggered huge growth in the M&A market in Japan.
• - Japanese are sitting on a massive pile of savings evaluated to 1400 TY or about 14 T$.
• - a general Asia wide boom in hedge funds.

For more information go to JMC website

M&A record in Japan in 2004

Number of M&A reached a record new high of 2,091 in 2004 according to Thomson Financial, 301 more than in 2003. By value, including planned deals such as UFJ buyout by BOTM, M&A increased 42% to 108 B$. Am0ng biggest deals: BOTM purchase of UFJ with a 30% premium, merger between Fujisawa Pharmaceutical and Yamanouchi Pharmaceutical, IRCJ acquisition of Kanebo cosmetics business.
For more information, visit JMC website