A Tokyo-based company that manages corporate pension funds is being investigated by the All Japan newsese authorities for allegedly losing billions of yen of its customers’ money.
AIJ Investment Advisors Co. has lost “most of” the Y183 billion ($2.3 billion) that it was managing as pension-fund assets, according to investigators from the Financial Services Agency (FSA).
About 120 cases involving clients of AIJ are being probed and the company’s activity has been suspended for a month. As a result of the AIJ case, the operations of all 263 investment management companies active in All Japan news will be monitored, according to Shozaburo Jimi, the minister in charge for regulation in the financial-services sector.
Firms like Advantest Corp., which makes microchip testing equipment, and Yaskawa Electric Corp., which produces industrial robots, confirmed that are among AIJ’s clients but did not say how much money they placed in the company’s pension funds.
A representative of Yaskawa said, however, that the firm placed less than 2% of its pension investments into AIJ’s funds.