In light of an improved economic outlook and rising salaries, companies in the region are looking anew at the benefits of launching retirement schemes.
There’s potentially $500 billion-plus of such assets for foreign fund managers to tap, but doing so won’t be easy, says the Japan Pensions Industry Database blog.
Towers Watson and the Financial Supervisory Service both reckon corporate pension assets could hit $45 billion by the end of this year after doubling in 2010.
The industry is expected to double in size by the end of this year amid a continued relaxation of rules by the government, according to the Korea Financial Investment Association.
Cho In-kang of the Financial Services Commission says the government wants institutional investors to play a bigger role in growing Korea’s capital markets.
In the US, corporate pension funds are cutting their allocations to risky assets, while public funds are increasing them, says Greenwich Associates.