Institutional Investor (May Issue)
“The secret weapon of Abenomics” is the rebalancing of Japan’s Government Pension Investment Fund (GPIF). “The GPIF is diversifying at a pace that’s astonishing for a fund of its size…. In the last six months of 2014, while slashing its JGB holdings, the fund increased its exposure to Japanese stocks by ¥5 trillion, to foreign equities by ¥7 trillion and to foreign bonds by ¥4 trillion.”
Tags: Abenomics, Bonds, Diversifying, Equities, GPIF, Japan, JGBs, Rebalancing, Stocks
Institutional Investor (August Issue)
With ￥108 trillion in assets under management, Japan’s Government Pension Investment Fund (GPIF) is almost six times the size of CalPERS. “Even more striking than the fund’s gargantuan size is its composition: Fully three quarters of the GPIF is invested in bonds, including ￥58.4 trillion of domestic bonds and ￥14.4 trillion of government agency debt.” This “mountain of government bonds” is “a low-return and potentially high-risk strategy,” and stands in contrast to other pension funds which are “trying to grow their way out by continuing to bet heavily on equities and making ever-larger allocations to private equity, hedge funds, real estate, infrastructure and other illiquid assets.”
