[Japanese pension funds favor domestic bonds to the highest extent since 2008] On September 2, a survey by Morgan Asset Management showed that Japanese pension funds planning to increase their domestic bond allocation exceeded pension funds planning to reduce their allocation by the largest margin in the past two decades. A survey of 82 pension funds conducted from April to June this year showed that 9.8% of the funds planned to increase their allocation to Japanese bonds and 1.2% planned to reduce their allocation. The difference between the two was the largest since the survey began in 2008. Some 62% of respondents said they were considering changing the way they manage domestic bond investments. As hedging costs remain high, funds are continuing to reduce their overseas bond allocations.