Japanese Monks Turn to Investing Amid Financial Struggles and Inflation
Buddhist monks in Japan are increasingly turning to financial investments as shrinking congregations, rising maintenance costs, and inflation threaten the sustainability of their temples. Koukyo Yoneta, a finance-savvy priest with experience at Daiwa Securities Group Inc., has achieved over 10% annual returns through US Treasuries, Japanese REITs, and stocks like BYD Co. and Hyundai Motor Co., helping fund ¥25 million in temple repairs. The broader trend reflects the financial strain on temples as Japan's Buddhist population declines by about 14% in two decades due to aging demographics and urbanization. Many temples earn less than ¥4 million annually, according to a survey of 7,000 temples conducted by Jodo Shinshu Hongwanji-ha in 2021. Monks face ethical dilemmas as their religious principles emphasize detachment from material gain, yet financial survival increasingly depends on prudent investment. Some are adopting defensive strategies like foreign-currency insurance products to balance tradition with necessity.
Topics: asset management inflation investing religious institutions