GPIF ups strategy overhaul
Japan’s US$1.3 trillion Government Pension Investment Fund has added three members to its investment committee, which is expected to have greater authority than before.
This is yet another move under Prime Minister Shinzo Abe’s administration to revamp strategy and diversify GPIF’s asset holdings to generate higher returns. The new members come from a state panel handpicked by Abe that had urged the world’s largest pension fund to restructure its investment strategy and governance, as well as cut its domestic bond holdings, as part of an effort to address rising payouts to retirees.
GPIF recently implemented a number of the panel’s recommendations, including adopting benchmarks such as the JPX-Nikkei Index 400 for domestic stocks, trimming traditional active management in favour of smart-beta active management, preparing to hire in-house investment experts at market rates and addi