* Plans to increase Japan assets to $50 bln from $35 bln
* Focus on individuals, who hold a total $15 trln in assets
* Favours corporate debt, European and emerging equities
* Developed country debt less attractive (Adds comments on allocations, background)
By Chikafumi Hodo
TOKYO, July 21 (Reuters) - French asset manager Amundi said on Wednesday it is aiming for a 40 percent increase in its Japan assets to $50 billion within three years and will focus on wooing cash-rich retail investors.
Amundi, the French asset management venture of Credit Agricole and Societe Generale, plans to offer several investment trust funds to Japanese retail investors soon, executives told a news conference on Wednesday.
Pascal Blanque, chief investment officer at Amundi Asset Management, said the company favours corporate credit, equities from European and emerging economies, while government bonds from developed countries were less attractive.
Amundi sees the Japanese retail investment market as more promising than the institutional one, as assets held by individuals total some $15 trillion and are still largely in low-yielding bank deposits.
Retail investors are seeking higher returns and Amundi is planning to launch several new publicly placed investment trust funds in the near term.
In contrast, institutional investors, such as pension funds, are more risk adverse as they have to focus on meeting their payment obligations rather than taking on risk.
"We are targeting to reach $50 billion within three years ... and to be number one in retail business (in Japan)," said Christian Romeyer, president of Amundi Japan.
The company was created last year by the merger of the asset management arms of two French banks, Credit Agricole and Societe Generale. Credit Agricole owns 75 percent while SocGen holds 25 percent.
Its assets under management in Japan total about 3 trillion yen ($34.3 billion).
Amundi Japan, which has a partnership with Japan's Resona Bank, is looking to form more tie-ups with distributors which include regional banks and brokerages, Romeyer said.
The firm favours corporate credits and high-yielding corporate bonds due to receding default risk, Amundi's Blanque said.
Amundi also likes emerging country debt due to hopes for higher yields and appreciation in currencies in some of those states.
The company has built up positions in European and emerging market equities over U.S. equities, Blanque said.
But the firm believes prices of government bonds, especially in developed countries, are too expensive.
"In the core developed government bond markets, yields are low, (they are) expected to remain low because there is risk aversion and captive demand," Blanque said.
He added that Japanese government bonds are less attractive with deflation easing and consumer prices in an upward trend.
Amundi as a whole holds about 688 billion euros ($886.8 billion) in assets under management. ($1=.7758 euro) ($1=87.42 yen) (Reporting by Chikafumi Hodo; Editing by Edwina Gibbs)