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المشهد العربي
Japan to review pension fund assets
The Japanese Minister of Health, who oversees the Pension Fund, confirmed that the organization is currently evaluating a re-assessment of the fund's asset allocation, despite a previous decision in March indicating there was no need for such a review. He explained that the current investment environment has not fundamentally changed from the core assumptions underlying the portfolio, which amounts to approximately 31 trillion yen (about $12.1 trillion). He pointed out that a one-percentage-point adjustment in asset distribution could result in flows exceeding 3 trillion yen, with a target allocation of 25% for each of domestic bonds, external debt, and both Japanese and foreign equities. These discussions come amid calls from the Prime Minister and the Finance Minister to redirect liquidity toward the local market, especially as yields on domestic bonds are rising, providing the fund with flexibility to reinvest in Japanese assets, particularly fixed-income instruments, should yields become more attractive.
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