Japan outperformed the US in 2025. Now the country’s top allocators are revealing where they’re deploying capital next.
A Japanese pension CIO running a 92% alternatives portfolio shares his minimum hurdle rates (13% liquid, 18% IRR illiquid), his contrarian bets on distressed China real estate and US credit defaults, and why he’s adding crypto as currency exposure.
Plus: Tokyo Stock Exchange on why 2026 will be “the year of alpha” and the $63 trillion NISA retail revolution.
HIGHLIGHTS:
0:00 – Intro
1:26 – Corporate governance reform in Japan
3:01 – The “Value Creation” program explained
5:28 – Best practice disclosures outperformed market by 20%+
6:33 – “Japan outperformed US: MSCI Japan +25% vs S&P 6-16%”
7:12 – “2026 is going to be the year of alpha”
7:43 – Inside Japan’s most aggressive pension fund
8:55 – “Our sponsors request higher return with higher risk”
9:34 – “92% alternatives portfolio”
10:02 – “Our target return is 8% — that’s 7% above risk-free rate”
10:47 – 11% average annual return over 5 years
14:30 – NISA program: ¥63 trillion in tax-exempt accounts
15:45 – “Japanese household savings = nearly 2x GDP”
17:28 – What this CIO looks for in managers
18:39 – “We’re researching distressed China real estate”
19:15 – Crypto assets and gold as currency exposure
20:18 – “Minimum criteria: 13% liquid, 18% IRR illiquid”
21:19 – Asset Owner Principle: Government pushing sophistication
22:10 – “$1-2 trillion insurance companies need to get more sophisticated”
KEY TAKEAWAYS:
- Japan MSCI outperformed S&P 500 in 2025: +25% vs 6-16%
- Japanese household savings = nearly 2x GDP (massive untapped potential)
- NISA program: ¥63 trillion and growing rapidly with 3x contribution limit expansion
- One pension fund runs 92% alternatives with 8% target return
- Minimum hurdle rates: 13% net for liquid, 18% IRR for illiquid
- Contrarian plays: Distressed China RE, US credit defaults
- Crypto and gold being added as “currency exposure”
- AOP (Asset Owner Principle) pushing Japanese institutions to sophisticate
PANELISTS:
- Yoshi Kiguchi, CFA — CIO, Pension Fund of Japanese Corporations
- Haruyuki Yamashita, CFA — Head of Policy Engagement, NY Office, Tokyo Stock Exchange
- Yoshiko Yamaguchi, CFA — Senior Consultant, FinCity.Tokyo (Moderator)
Recorded live at Global Alts Miami 2026
