Japan’s JCCU posts dismal annual return

26 August 2014   Category: News, Asia, Global, Japan   By Maya Ando

The Japanese Consumers’ Co-operative Union (JCCU) pension fund posted an annual return of 1.34% as of the end of June this year, missing its target of 2%.

The fund, which managed 77.4 billion yen (US$749 million) as of the end of the second quarter, currently administers two individual funds; with its first system consisting of 43,728 members and assets of 35.8 billion yen, and its second system with 12,375 members and 41.6 billion yen in assets.

The latter system was established in December 2010 as a bridge between the retirement plans of each co-operative and the tax-qualified retirement pension plan, which was abolished in 2012.

The equity allocations of the first and second systems returned 3.91% and 4.02%, respectively, during the last 12 months. Exposure to foreign equities for both systems stood at about 20%, while 40.1% and 35.9% was allocated to foreign bonds by the first and second system, respectively.

For the most recent fiscal year, the JCCU’s allocation to foreign bonds stood at 43%, while foreign equities were allocated 13%. Additionally, between 15% and 20% of assets have been invested into absolute return products.

JCCU was established in 2005. It supplies food and other daily necessities through outlets and home delivery services to its members.