Firms looking to quit AIJ’s funds

Kyodo

More than 10 companies belonging to some of the 74 corporate pension funds that entrusted assets to scandal-hit AIJ Investment Advisors Co. are seeking to withdraw their memberships, according to officials of the funds.

The hurdles to withdraw from corporate pension funds are high, but the managers face the possibility of incurring increased losses.

The companies must be able to cover reserve shortages in a lump sum payment and receive approval from more than two-thirds of member representatives.

Companies that can’t afford to meet the payment requirement will remain in the funds and may be forced to bear AIJ’s losses, according to the pension fund officials.