MNI BRIEF: Japan Sumitomo Life To Up JGB, Foreign Bond Buys

Japan's Sumitomo Life Insurance company will look to increase its holdings of longer-dated Japanese government bonds and foreign credit assets over the next 6 months, the company's chief fund manager said Friday.

As for hedged foreign assets, Sumitomo Life is focused mainly on high-credit corporate bonds as it seeks higher return than from government bonds. The company increased foreign bond holdings by JPY470 billion in the six months through end-September to JPY10.3 trillion, 30.6% of its total assets and says it will be 'flexible' to future investments, watching currency and interest rate developments. The firm also increased foreign stock holdings by JPY220 billion to JPY1.65 trillion in the April-September period.

The lifer plans to increase its holdings of domestic bonds, mainly longer-end JGBs, after a JPY180 billion increase to JPY14.0 trillion (41.7% of its total assets) in the April-September period. Sumitomo expects the dollar to trade between JPY100 and JPY112 and the euro to move in a range of JPY115 to JPY135 in the second half of this fiscal year.