Sources told Refinitiv the Government Pension Investment Fund (GPIF) has no plan
to change its target asset allocation but may, within existing permitted ranges,
shift more funds into Japanese assets as the government studies options. Japan's
finance minister Katayama last Friday said the government will seek to encourage
pension funds, including GPIF, to substantially increase investment in Japanese
financial assets; the remarks lifted the yen and JGBs. GPIF managed ¥293.6 tln
(about $1.81 tln) as of March. Officials said any increase would be implemented
within the current benchmark limits and would not immediately alter GPIF's
medium-term targets; GPIF is legally required to invest solely in beneficiaries'
interests and cannot deploy assets to advance government policy. Under its
current strategic plan, GPIF allocates 25% each to domestic bonds, overseas
bonds, domestic equities and overseas equities.
