Fukoku Mutual Life Insurance Co. is set to invest heavily in Japan’s super-long government bonds in the current fiscal year following a significant surge in their yields. The insurer is also contemplating a strategic shift away from foreign debt investments. According to Junya Morizane, general manager of the company’s Investment Planning Department, “Yields have risen to levels that align with our investment perspective, so we will proceed with bond re-balancing while actively increasing holdings.” Morizane further emphasized that “there is ample room to continue purchasing super-long bonds,” indicating the insurer’s confidence in the market. This move comes as the yields on these bonds have reached attractive levels for Fukoku Mutual Life Insurance Co., prompting a re-evaluation of their investment portfolio.
Investment Strategy Shift
The decision to focus on domestic super-long bonds represents a potential significant shift in the insurer’s investment strategy. By capitalizing on the current high yields, Fukoku Mutual Life Insurance Co. aims to optimize its investment returns. The company’s willingness to adjust its investment portfolio in response to market changes highlights its proactive approach to financial management.
