Investing in insurance - backed securities ( ILS ) and other reinsurance assets is becoming increasingly popular in Japan , as interest in alternative asset class allocations and ESG investments grows . Investors in the country are demonstrating a growing trend to returns that lack correlation with the wider economy and financial markets . Although the country ’s pension funds have been interested in the alternative asset class for over a decade , that trend is now spreading , especially to corporate pension funds and regional banks . Two percent of the 303 alternative investment institutions in Japan already allocate to at least one alternative asset class .
Investing in insurance-linked securities (ILS) and other reinsurance assets is becoming increasingly popular in Japan, as interest in alternative asset class allocations and ESG factors grows. Investors in the country are demonstrating a growing attraction to returns that lack correlation with the wider economy and financial markets. Although the country’s pension funds have been interested in the ILS asset class for over a decade, that interest is now spreading, especially to corporate pension funds and regional banks. Two thirds of the 303 alternative investment institutions in Japan already allocate to at least one alternative asset class.