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BIG CHANGES: World’s Largest Pension Fund Shifts Allocation

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Japan’s Government Pension Investment Fund (GPIF), the steward of 67 million retirement participants, is embarking on a dramatic shift toward equities. The pension giant is cutting its allocation to domestic bonds, specifically Japanese government bonds (JGBs). Domestic bonds will go from 60% to 35%, a major change in allocation, over an unspecified period of time. The GPIF has been a key buyer of JGBs, paying into a ballooning pool of public debt. For the first time ever, the GPIF could be 50% weighted to public equities. With the Bank of Japan surprisingly easing monetary policy and the GPIF allocating toward stocks, Japanese equities are sure to get a short-term boost.

The GPIF uses both active, passive and smart beta managers in equities. The strategy shift is drawing the attention of global fund managers.

View Institutional Investor Profile of GPIF

GPIF President Takahiro Mitani told reporters, “The change in our investment stance is to face changes in the economy as it exits deflation.”

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Mauritius Aims to Sell Citizenship and Passports to Bolster National Wealth Fund

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The island country of Mauritius plans to offer foreigners a chance to obtain country citizenship in exchange for a non-refundable contribution of US$ 1 million to the national sovereign wealth fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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CapitaLand Aims to be a Real Estate Funding Machine

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CapitaLand Investment Management, a real estate investment management arm of Singapore-based CapitaLand, hired Caleb Shen as managing director for fund management. CapitaLand is keen on growing its real estate fund management business. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Treasurer Perrottet Reveals the NSW Generations Fund

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New South Wales wants its own Future Fund.

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