I posted last week on the panel tasked with proposing an overhaul of the Japan’s Government Pension Investment Fund.
The wheels are grinding slowly forward as more comes to light:
- The advisory panel will report on Wednesday (today)
- It will propose far-reaching reforms to the Government Pension Investment Fund (GPIF)
- There will be enormous change to its governance and investment strategy
- The reforms will be complex, so its likely that investment reallocation decisions will be slow coming, slower than investors might expect
- It is likely the GPIF shifts away from JGBs and benchmark passive equity investments to a new index based on investment returns
- The report will also propose setting up “baby funds” that could take on more exposure to riskier assets and managed separately from the core fund
- The report is not expected to specify recommended asset allocations (this will come later)
- Report is to be released at 0830GMT
