Tokyo Investor Day
MEETING INVESTMENT CHALLENGES
IN JAPANESE MACRO ENVIRONMENT
Backdrop:
Decades-long decline in Japanese interest rates
• Negative rates on certain benchmark Japanese government bonds follow Japan monetary
stimulus strategies
•
Limited availability of attractive long-dated Yen fixed income investments
Positioning
Strong ALM focus
• Multi-currency business significantly reduces
reliance on Yen-denominated investments
Pace and mix of reinvestment flows reduce
impact of current market conditions
⚫ Diversified high quality investment portfolio
• Products emphasize mortality and expense
margins
•
•
Strategies and Opportunities
Leverage Prudential's global asset
management capabilities
Increased emphasis on U.S. dollar products
Selective use of non-coupon asset classes to
support long-dated liabilities
Modest level of investment in U.S. dollar assets
hedged to Yen
Longer maturity Yen investments; not investing
at negative yields
Additional capacity to enhance yield through
credit allocation
Prudential
Tokyo Investor Day 9.15.2016
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