FILE PHOTO: The sign of Japan's Government Pension Investment Fund (GPIF) is seen at its reception in Tokyo, Japan, November 16, 2018. REUTERS/Toru Hanai/File Photo

Japan to push its massive pension fund to boost alternative investments, Nikkei says

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TOKYO, July 12 : Japan aims to raise the ratio of unlisted shares, real estate and other alternative investments in the portfolio of the Government Pension Investment Fund, the world's largest pension fund, the Nikkei said on Sunday.

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.

Alternative investments, as distinct from conventional assets such as listed shares and bonds, accounted for 1.7 per cent of GPIF's assets in March, far below the allowed 5 per cent cap.

A government panel will soon compile a report stipulating the ratio will be raised towards 5 per cent, a move aimed at broadening the scope of pension asset management and reducing overall investment risks, the business daily reported, without citing the source of the information.

No one was available to comment on the report outside business hours at the Ministry of Health, Labour and Welfare, which oversees GPIF.

Source: Reuters

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