16 Jun 2014
Japan: Will GPIF assets re-allocation under-deliver?
FXStreet (Bali) - The Japanese stock market has been recently boosted in anticipation that the GPIF (Japan’s largest pension fund) will revise the allocation of its assets into riskier holdings such as increasing their weighing on foreign bonds or domestic shares.
On Monday though, the WSJ noted that "the stance of Japan’s third-largest pension fund suggests any changes in asset allocations may not be as dramatic as hoped." According to Daisuke Hamaguchi, chief investment officer of the fund, cited by the WSJ, "a pension fund is just that: a fund created to pay out pensions, not to stick its neck out to maximize growth."
Mr. Hamaguchi added: “The market was good, but it’s not like we’re taking on a lot of risk by doing something like increasing our stock allocation. If things get any better than this we can actually reduce our exposure to risk."
On Monday though, the WSJ noted that "the stance of Japan’s third-largest pension fund suggests any changes in asset allocations may not be as dramatic as hoped." According to Daisuke Hamaguchi, chief investment officer of the fund, cited by the WSJ, "a pension fund is just that: a fund created to pay out pensions, not to stick its neck out to maximize growth."
Mr. Hamaguchi added: “The market was good, but it’s not like we’re taking on a lot of risk by doing something like increasing our stock allocation. If things get any better than this we can actually reduce our exposure to risk."