April 30, 2020 / 8:06 AM / a month ago

TABLE-Top Japan insurers' investment plans for fiscal year to March 2021

    April 30 (Reuters) - Following is a summary of the investment plans of Japan's major life
insurance companies for the year through March 2021, based on interviews with Reuters and news
conferences this month. For stories on each company's investment plans, see         .

FOREIGN BONDS
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Nippon Life    to add international bonds without currency hedging, and FX-hedged credits
Dai-ichi       stance on foreign bonds will depend on currency, interest rate levels
Meiji Yasuda   to increase FX-hedged sovereign bonds, incl Ginnie Mae's MBS
Sumitomo       to increase holdings; plans to boost foreign credit assets by 800 bln yen
Japan Post     to increase FX-hedged bonds, to keep unhedged debt steady
Fukoku         to raise holdings of foreign bonds without FX hedge, cut unhedged investment 
Taiju          to reduce holdings of FX-hedged foreign bonds, may add unhedged ones
Taiyo          to reduce holdings and to shift to investment-grade credit products
Daido          to consider reducing holdings of soverign bonds
Asahi          to reduce holdings by 50 bln yen
     
JAPAN BONDS
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Nippon Life    to add yen bonds, incl fully yen-hedged foreign debt using asset swaps
Dai-ichi       to increase yen bond holdings, incl Japanese government debt
Meiji Yasuda   stance on yen bonds will depend on interest rate levels and hedge costs
Sumitomo       to increase holdings by buying mainly super-long bonds
Japan Post     expects yen fixed-income holdings to fall
Fukoku         to reduce holdings of JGBs by 30 bln yen, increase corporate bonds
Taiju          to trim holdings after an increase of 73 bln yen in 2019/20
Taiyo          to keep holdings steady to shift to credit products
Daido          to increase holdings of superlong bonds
Asahi          to reduce holdings by 40 bln yen
    
JAPAN STOCKS
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Nippon Life    to keep Japanese stock holdings steady
Dai-ichi       to cut back domestic stock holdings in order to reduce risks
Meiji Yasuda   to reduce equity holdings with aim of reducing risks
Sumitomo       to increase holdings; plans to buy on dip
Japan Post     to increase holdings
Fukoku         to increase holdings by 20 bln yen with focus on dividend income
Taiju          to keep holdings steady
Taiyo          n/a
Daido          n/a
Asahi          to slightly increase holdings

FOREIGN SHARES, ALTERNATIVE INVESTMENTS
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Nippon Life    to keep foreign stock and domestic real estate holdings steady
Dai-ichi       to increase alternative assets such as private equity real estate
Meiji Yasuda   to moderately add domestic investment property assets
Sumitomo       to increase holdings of foreign stocks and real estate assets
Japan Post     to keep foreign stock holdings steady; to increase alternative assets
Fukoku         to increase foreign stock holdings by 50 bln yen, incl mutual funds
Taiju          to raise investments in European hybrid bond, direct lending and PE funds 
Taiyo          to raise U.S., European stock holdings by 20-30 bln yen
Daido          to increase alternative investments when markets stabilise
Asahi          to keep foreign stock holdings flat; to increase alternative investments
    
EXPECTED MARKET RANGES
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                 USD/JPY      EUR/JPY       NIKKEI         JGB 10-yr      US 10-yr
Nippon Life     Y100 - 120   Y110 - 130   14,000 - 24,000  -0.3 to 0.1%   0.3 - 1.7%
Dai-ichi        Y100 - 115   Y110 - 130   16,000 - 22,000  -0.2 to 0.2%   0.0 - 1.5%
Meiji Yasuda    Y100 - 115   Y107 - 127   15,000 - 21,000 -0.15 to 0.15%  0.5 - 1.4%
Sumitomo        Y100 - 115   Y105 - 130   13,500 - 23,000  -0.3 to 0.2%   0.3 - 2.0%
Japan Post      Y100 - 112   Y110 - 125   16,000 - 23,000  -0.2 to 0.2%   0.2 - 1.2%
Fukoku          Y 95 - 115   Y105 - 130   16,000 - 23,000  -0.3 to 0.2%   0.3 - 1.7%
Taiju           Y103 - 113   Y113 - 123   16,500 - 22,500  -0.2 to 0.1%   0.3 - 1.5%
Taiyo           Y100 - 115   Y110 - 125   16,000 - 24,000  -0.2 to 0.2%   0.1 - 1.5%
Daido           Y 95 - 112   Y110 - 126   15,000 - 22,500  -0.4 to 0.1%   0.2 - 1.5%
Asahi           Y102 - 112   Y110 - 125   17,000 - 23,000  -0.2 to 0.2%   0.5 - 1.2%      

 (Reporting by Tokyo Markets Team; Editing by Rashmi Aich)
  
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