880,000 pensions hit by Japan investment scandal
Money | Updated today at 04:35 PM
TOKYO (AFP) - A growing scandal around an investment company that has lost US$2.3 billion (S$2.89 billion) has affected pensions for up to 880,000 people, Japan's government said on Tuesday.
AIJ Investment Advisers has reportedly been lying to clients for years, boasting of annual returns of up to 240 per cent while in fact 185 billion yen (S$2.88 billion) in pension investments has melted away.
The company's operations were suspended last week and the government ordered a probe of 260 asset management firms nationwide after allegations that most of the money in its care had disappeared.
The scandal has shocked Japan, where a rapidly ageing middle class population is increasingly looking to private pension funds, while the state retirement pot also struggles due to gross mismanagement of its own.
No comments:
Post a Comment