Jan
12
Japan’s GPIF Debates 3% Stock Cap in Push for In-House Investing
ByThe world’s biggest pension fund signaled a willingness to cap direct holdings at 3 percent of a company’s stock as it seeks freedom to invest in equities itself rather than hiring asset managers.
Japan’s $1.2 trillion Government Pension Investment Fund currently tells external fund managers to hold less than 5 percent of a company, Hiromichi Mizuno, chief investment officer for the fund, said at a health ministry pension panel on Tuesday. Should GPIF begin direct investments in stocks, a 3 percent limit on holdings of each company should be considered, Mizuno said, without explaining why.
The fund has undergone unprecedented changes since 2013, paring its bond allocation to make way for more equities and a foray into alternative investments. GPIF’s overseers at Japan’s health ministry now want to improve the fund’s governance by creating a board of directors, and are debating whether laws should be changed to allow the fund to invest in stocks directly…
