Meiji Yasuda Life Insurance has announced a shift in its investment strategy, with the firm outlining plans to allocate approximately JPY600 billion (equivalent to US$4.2 billion) into both domestic and international private assets over a forthcoming three-year period.
According to a report from Nikkei Asia, this move is part of a broader strategy to diversify its portfolio beyond traditional government bonds and stocks, with the aim of enhancing returns.
Company president Hideki Nagashima disclosed in the report the company's intention to focus on long-term assets that align with the life insurance sector, specifically targeting private equity and private debt. This approach forms a key component of Meiji Yasuda's new medium-term management plan, set to commence in April and span three years.
As part of its approach, Meiji Yasuda intends to collaborate with asset management startups. This collaboration aims to broaden its reach in new asset classes. The selection of these startups will be based on a combination of their performance history and the alignment of their philosophy and methodologies with Meiji Yasuda's investment goals.
This strategic shift also aligns with Japanese Prime Minister Fumio Kishida's vision of transforming Japan into an “asset management nation.” Under this vision, Japan is simplifying regulations to facilitate the establishment of asset management businesses.
Additionally, Meiji Yasuda has committed to investing or lending JPY800 billion towards environmental, social, and corporate governance-related enterprises over the same three-year period. This level of investment mirrors that of the company's current management plan.
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