Daido Life Insurance pushes infrastructure for stable returns

The Japanese insurer continues to raise infrastructure allocation for stable income amid the low interest rate environment.

Daido Life Insurance said it began making infrastructure investment three years ago, and it aims to raise allocation in the future. Although no target allocation is set, it considers to invest in three to four infrastructure funds every year.

Global brownfield investment is Daido Life’s focus as there would be fewer risks compared to greenfield’s counterparts. However, greenfield opportunities in OECD countries will still be considered.

Meanwhile, it will pursue infrastructure investments through both closed-ended and open-ended infrastructure funds whereas co-investment will not be considered.

It targets a broad range of sectors, including renewables, core infrastructure (transportation, utility) and social infrastructure (hospital) etc.

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