Mizuho Corporate Bank, a unit of Japan's second-biggest lender Mizuho Financial Group, has set up two hedge fund companies in the US and the UK, according to the Nihon Keizai Shimbun. Mizuho is believed to be the first Japanese bank to set up its own hedge fund. The companies aim to have assets under management of around Y100 billion ($87 million) in three to four years time. They will target annual returns of 12-15 per cent, according to the report. The US firm is a wholly-owned unit based in New York whilst the Mizuho Corporate Bank will not contribute capital to the London-based entity but will share a portion of profits. The two firms will soon begin accepting funds from high net worth and institutional investors.