Japanese pension fund assesses need to review asset allocation structure — The Japan Times
In Japan, the Government Pension Investment Fund (GPIF) continues to consider whether its asset allocation structure needs to be reviewed. Health Minister Kenichiro Ueno, who oversees the fund, said this at a regular press conference in Tokyo, The Japan Times reports.
No decision on a review has been made yet
According to Ueno, GPIF decided in March that there was no need for a review. At the same time, the fund continues to properly examine the matter. The minister also noted that the investment environment has not deviated significantly from the assumptions on which GPIF bases its portfolio structure.
As of the end of June, the fund managed assets worth approximately ¥318 trillion, or $2.1 trillion. Due to GPIF's scale, market participants around the world closely monitor its asset-allocation decisions: changing the share of any asset class by one percentage point could theoretically mean flows of more than ¥3 trillion.
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Current portfolio structure
GPIF currently aims to keep 25% of its portfolio in each of four asset classes: domestic bonds, foreign debt securities, Japanese equities and foreign equities. Analysts have indicated that after Japanese bond yields rose in recent months, the fund may expand the target share of domestic bonds.
Prime Minister Sanae Takaichi and Finance Minister Satsuki Katayama have also called on Japanese pension funds to direct more money into the domestic market. On August 21, GPIF's management committee held its first publicly announced meeting during the summer holiday period in seven years, prompting speculation about a possible change in asset allocation.
