Japan has no immediate plans to change target asset allocations of its state pension funds but could work within existing allowable ranges to direct more investment to domestic assets, people with knowledge of government deliberations told Reuters.
Government Plans
Finance Minister Satsuki Katayama said on Friday the government would seek ways to encourage pension funds, including the Government Pension Investment Fund’s (GPIF), to make “substantially greater investments in Japanese financial assets.”
The remark sparked gains in the yen and bonds as investors bet billions of dollars could be channeled into Japanese markets through GPIF, the world’s largest pension fund, which manages 293.6 trillion yen ($1.81 trillion) in assets as of March.
While the government is exploring ways to boost such investments within the existing allowable ranges of the benchmark portfolio, the initiative won’t lead to immediate revisions to GPIF’s medium-term objectives, two government sources said.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
