|
|
Corporate Pension Asset Growth Slows in Japan
Asia Times
October 5, 2004
TOKYO - The balance of assets held in corporate pension programs was 82.11 trillion yen (US$740 billion) as of June 30, up 3.9% on the year, but the growth rate slowed from the 16.2% for the quarter ended March 31 in light of a pause in the stock rally.
Corporate pension assets marked a year-on-year increase for the fifth straight quarter in the April-June period, according to Bank of Japan statistics. But the balance is down from the 83.47 trillion yen recorded in the January-March period, when stock prices were sharply higher.
Stocks represented 29.5% of the total asset balance as of June 30, up 18.9% on the year. Cash and deposits rose 40.3% to 4.68 trillion yen as companies converted a portion of their pension-related holdings in preparation to return assets to the government.
"This trend has strengthened since the beginning of last fall, and exchanges stemming from the decision to no longer manage pension assets on behalf of the government are likely to continue," says the manager of pension assets for a major home appliance manufacturer.
Given that the stock market has been treading water since July, the downturn in pension asset growth may continue.
|
|
