Japanese asset managers are stepping up their yen bond business for overseas investors. Asset Management One, part of the Mizuho Financial Group, has secured a commitment from a European institutional investor for a new yen bond strategy. The firm restructured its overseas sales division about two years ago, and in February this year launched a UCITS-compliant yen bond fund for foreign investors that actively combines Japanese government bonds and corporate bonds, its first such launch in roughly 30 years. Nomura Asset Management has also rolled out an absolute return strategy for yen-denominated bonds and hired a former Goldman Sachs Asset Management executive to strengthen its marketing capabilities. The yield on the 10-year Japanese government bond has hit its highest level in about 29 years, and yields after currency hedging have also improved, making yen bonds increasingly attractive for overseas investors.
Goldman Sachs Group IncNomura Asset Management launched a new yen bond strategy and hired a former Goldman executive to boost marketing, likely attracting more foreign investor demand for its funds.