Key Takeaways
- • Japan aims to raise the share of unlisted shares, real estate and other alternative investments in the Government Pension Investment Fund (GPIF), the world's largest pension fund with roughly $1.8 trillion in assets, according to the Nikkei.
- • Alternative investments accounted for 1.7% of GPIF's assets in March, far below the 5% cap the fund is permitted to hold.
- • A government panel is expected to soon compile a report stipulating that the alternative investment ratio be raised toward 5%, per a business daily report cited by Reuters.
- • Finance Minister Satsuki Katayama said the government aims to steer GPIF and other state pension funds to "substantially" increase investments in domestic assets, a move that sparked a jump in the yen and government bond prices on Friday.
Summary
Japan aims to raise the ratio of unlisted shares, real estate and other alternative investments in the portfolio of the Government Pension Investment Fund (GPIF), the world's largest pension fund, the Nikkei reported on Sunday, July 12, according to Reuters. The report describes a push to broaden the scope of the fund's asset management and reduce overall investment risk.
Finance Minister Satsuki Katayama, who has been trying to boost the weak yen, sparked a jump in the currency and government bond prices on Friday by saying the government aimed to steer the $1.8 trillion GPIF and other state pension funds to "substantially" increase investments in domestic assets. The alternative-investment initiative is a related step in that broader policy direction.
Alternative investments, as distinct from conventional assets such as listed shares and bonds, accounted for 1.7% of GPIF's assets in March, well below the allowed 5% cap. A government panel will soon compile a report stipulating that the ratio be raised toward 5%, according to the business daily cited by the Nikkei, which did not cite its source for the information.
No one was available to comment outside business hours at the Ministry of Health, Labour and Welfare, which oversees GPIF. Reuters reporting was by Kiyoshi Takenaka.
Finance Minister Satsuki Katayama, who has been trying to boost the weak yen, sparked a jump in the currency and government bond prices on Friday by saying the government aimed to steer the $1.8 trillion GPIF and other state pension funds to "substantially" increase investments in domestic assets. The alternative-investment initiative is a related step in that broader policy direction.
Alternative investments, as distinct from conventional assets such as listed shares and bonds, accounted for 1.7% of GPIF's assets in March, well below the allowed 5% cap. A government panel will soon compile a report stipulating that the ratio be raised toward 5%, according to the business daily cited by the Nikkei, which did not cite its source for the information.
No one was available to comment outside business hours at the Ministry of Health, Labour and Welfare, which oversees GPIF. Reuters reporting was by Kiyoshi Takenaka.
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