GPIF to boost active investments in Japan stocks and bonds
By Makiko Yamazaki
TOKYO, Jan 19 (Reuters) -Japan's Government Pension Investment Fund (GPIF) plans to expand active investments in Japanese stocks and bonds as the world's largest pension fund relaxes its criteria in the selection of asset managers, its president said on Friday.
GPIF's newly introduced data science-based methods of evaluating performance of asset managers would allow it to select "a reasonable number" of high-performing active fund managers in Japanese assets, President Masataka Miyazono told reporters.
The $1.5 trillion pension fund has already newly selected 19 actively managed funds in North American stocks and 14 active funds in advanced country stocks excluding Japan.
Still, active investments accounted for less than 7% of GPIF's Japanese and global stock portfolio as of March 2023.
GPIF in December removed some criteria in asset manager selection, including the size of assets under management and the history of fund operation, opening up to emerging asset managers with short track records.
Miyazono said that the step was not in response to the government's recent push to promote "emerging manager programmes", whereby pension funds or endowments allocate a certain amount of their portfolio to be invested in emerging managers.
"As a design, we can't manage investments for policy purposes," he said. "Our investment management should be done for the sole benefit of pension recipients."
($1 = 148.1400 yen)
Reporting by Makiko Yamazaki; Editing by Alex Richardson
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