Date
20 November 2017
Japan’s pension investment fund is said be cutting its allocation to domestic bonds and investing more in equities. Photo: Bloomberg
Japan’s pension investment fund is said be cutting its allocation to domestic bonds and investing more in equities. Photo: Bloomberg

Japan pension fund to shift to stocks, foreign assets: WSJ

Japan is likely to approve a new portfolio for the country’s massive pension fund, a move that could have a significant impact on financial markets, the Wall Street Journal reported, citing people familiar with the matter.

The new portfolio will cut the 127 trillion yen (US$1.2 trillion) fund’s 60 percent target allocation to Japanese bonds by roughly half and sharply increase weightings to Japanese stocks and foreign assets, sources were quoted as saying.

The new allocation of the Government Pension Investment Fund is expected to be announced by the welfare minister at a news conference Friday.

The shift to the new allocation will take place gradually as the fund watches market conditions closely, the report said.

Reports of the new allocation helped push Tokyo’s benchmark Nikkei stock index up 1.7 percent during the morning session Friday, the Journal noted.

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RC

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