The GPIF is world’s largest pension fund and managed 169 trillion yen ($1.5 trillion) worth of assets as of end-December. Its moves are closely watched by global financial markets because of its mammoth size.
Japan’s Government Pension Investment Fund (GPIF) said on Tuesday it would raise its allocation target for foreign bonds to 25% from the current 15%, marking a shift from unprofitable domestic bonds to foreign assets.
The GPIF is world’s largest pension fund and managed 169 trillion yen ($1.5 trillion) worth of assets as of end-December. Its moves are closely watched by global financial markets because of its mammoth size.
Another 11 trillion yen ($101.46 billion) would be poured into foreign bonds if the fund invests 25% in the asset, according to Reuters’ calculation based on the fund’s results as of end-June.
The fund will also extend the permissible range of deviation from the foreign bonds allocation target to 6% from 4%, it said in a statement, pushing the upper limit of investment in the asset to 31% from 19%.
In contrast, the GPIF will lower the allocation target for domestic bonds to 25% from 35%, meaning its new portfolio will be evenly split at 25% each across domestic and foreign stocks and domestic and foreign bonds.
GPIF President Norihiro Takahashi will be replaced by a former Norinchukin Bank executive Masataka Miyazono on April 1.
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