Japan has no plan at this stage to revise the target asset allocation of its national pension fund, according to Reuters, which cited sources familiar with internal government discussions. The report said authorities could still increase domestic asset investment within the current tolerance bands. The news pushed the yen and Japanese government bonds lower again, with the yen at one point weakening 0.4% to 162.36 per U.S. dollar before losses eased after additional comments from Chief Cabinet Secretary Minoru Kihara. Speaking at a Monday press conference, Kihara said the Government Pension Investment Fund, or GPIF, reviews its portfolio every year and would begin a formal adjustment process only if market conditions changed materially. Japan’s Ministry of Health, Labour and Welfare, which oversees the fund, declined to comment. Last Friday, Finance Minister Satsuki Katayama had said the government would roll out supporting measures to encourage GPIF and other pension institutions to sharply increase holdings of Japanese financial assets, prompting market bets on potentially hundreds of billions of dollars flowing into domestic markets. As of March this year, GPIF managed 293.6 trillion yen, or about $1.81 trillion, in assets.
No change planned for GPIF target allocation
Japan currently has no plan to revise the target asset allocation of its national pension fund, Reuters reported on July 13, citing sources familiar with internal government discussions. The report said the government could still raise investment in domestic assets within the existing fluctuation bands.
The headline weighed again on the yen and Japanese government bonds. The yen at one point fell 0.4% to 162.36 against the U.S. dollar before trimming part of the move after additional remarks from Chief Cabinet Secretary Minoru Kihara.
Officials comment after market swings
At a Monday press conference, Kihara said the Government Pension Investment Fund, or GPIF, reviews its portfolio every year. He added that a formal adjustment process would begin if market conditions changed materially. Japan’s Ministry of Health, Labour and Welfare, which supervises the fund, declined to comment.
Last Friday, Finance Minister Satsuki Katayama said the government would introduce supporting measures to encourage GPIF and other pension institutions to significantly increase holdings of Japanese domestic financial assets. That comment had quickly lifted the yen and Japanese government bonds, as markets bet that the world’s largest pension fund could direct hundreds of billions of dollars into local markets.
As of March this year, GPIF managed 293.6 trillion yen, equivalent to about $1.81 trillion, in assets.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
