A $1 trillion money manager says Japan is his favourite international investment

Business Insider deputy executive editor Matt Turner speaks to David Hunt, president and CEO of PGIM, who says that Japan is at the top of his firm’s list in terms of international opportunities. He notes that there are large institutional investors there looking to put money into high-yielding assets elsewhere in the world. He calls it a “search for yield 2.0,” which is something we haven’t seen in quite some time from the Japanese. Following is a transcript of the video.

Matt Turner:Going back a step, you mentioned Bank of Japan, or the Japanese market, and Europe. Outside of the US, where do you see opportunity? You mentioned India as well.

David Hunt: There’s no question we would certainly have Japan at the top of our list. We do believe that there are large institutional investors there who are looking very actively to put their money to work outside of Japan and to move into higher-yielding assets. I would have said that their search for yield 1.0 was to move into the US and to move to kind of investment grade corporates. We’re now really seeing a search for yield 2.0, which has to do with high-yield, emerging markets, and structured products, which as you know, we hadn’t seen for quite some time from the Japanese. So, I think we do believe that there is a lot more yet to run on the movement of money out of Japan.

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