Samiksha Jaiswal (Editor)

Government Pension Investment Fund

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Type
  
Pension fund

Key people
  
Takahiro Mitani (CEO)

Headquarters
  
Chiyoda, Tokyo

Industry
  
Financial services

Website
  
[1]

Founded
  
1 April 2006, Japan

Government Pension Investment Fund wwwgpifgojpcommonimglogogif

Total assets
  
approx US$ 1,162 billion (Dec-end 2015)

Profiles

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Government Pension Investment Fund (年金積立金管理運用独立行政法人, Nenkin Tsumitate-kin Kanri Un'yō Dokuritsu-gyōsei-Hōjin), or GPIF, is an independent administrative institution, under the jurisdiction of Ministry of Health, Labour, and Welfare, established by the Government of Japan. It handles fund management and operation of Japan's both National Pension and Employees' Pension. It is known as the world's largest public pension fund.

Contents

Investment principles

GPIF has established “Investment Principles” as set forth below:

  • Overarching goal should be to achieve the investment returns required for the public pension system with minimal risks, solely for the benefit of pension recipients from a long-term perspective, thereby contributing to the stability of the system.
  • Primary investment strategy should be diversification by asset class, region, and timeframe. While acknowledging fluctuations of market prices in the short term, we shall achieve investment returns in a more stable and efficient manner by taking full advantage of our long-term investment horizon. At the same time we shall secure sufficient liquidity to pay pension benefits.
  • Formulate the policy asset mix and manage and control risks at the levels of the overall asset portfolio, each asset class, and each investment manager. We employ both passive and active investments to attain benchmark returns (i.e., average market returns) set for each asset class, while seeking untapped profitable investment opportunities.
  • By fulfilling our stewardship responsibilities, we shall continue to maximize medium- to long-term equity investment returns for the benefit of pension recipients.

    • Investment assets and portfolio allocation

    As of Jun-end 2016, GPIF sets the policy asset allocation as following:

  • Domestic bonds: 35% (± 10%)
  • Domestic equities: 25% (± 9%)
  • International bonds: 15% (± 4%)
  • International equities: 25% (± 8%)

    • References

    Government Pension Investment Fund Wikipedia
    (Text) CC BY-SA