Japanese institutional investors as well as mutual funds finally started to buy foreign currency-denominated assets, after having stayed on the sidelines for some time since the start of the new fiscal year.

Japanese institutional investors seem to have sought returns by selling dollar-denominated assets. That kind of repatriation is generally yen positive.

Investors normally start making fund allocation from around the Easter Holiday.

Most of (the holdings) are in dollar-denominated assets. They'll want to see how vulnerable it is to the U.S. Congress. It'll be more difficult to finalize an investment proposal that involves an American bank or an American asset.

As hedge funds become more institutional, and we predict that eventually 85 percent of assets will come from institutions, there will be downward pressure on fees. We just aren't seeing it yet.

Japanese individual investors continue to shun risk, and the notion of putting money into foreign assets is repugnant.