Pension Fund Stops Daiwa Investments: Though the...

Pension Fund Stops Daiwa Investments: Though the financial impact of the move is relatively small, a decision by Japan’s largest pension fund manager to refrain from new investments in Daiwa Bank may signal a broader loss of faith by large customers in the scandal-torn bank. The Pension Fund Assn. had been adding about $6 million a month to its funds with the Osaka, Japan-based institution, which represents about 4.5% of the association’s total new investments each month. An association official, who asked not to be named, said the suspension of new investments will continue until there is a full accounting of Daiwa’s $1.1-billion trading loss debacle, which has raised questions about the bank’s management controls.