Japan eyes higher return target of 1.9% for GPIF pension fund

Analysts say proposal could lead to more Japanese stocks in portfolio

GPIF has been dubbed the "whale" for its outsize market presence, with more than 240 trillion yen in assets under management as of March 31. (Photo by Akira Inujima)

TAKEMI NAKAGAWA and AKIRA INUJIMA, Nikkei staff writers

December 3, 2024 05:59 JST

TOKYO -- Japan signaled plans on Monday to raise the return on investment target of its massive Government Pension Investment Fund by 0.2 percentage point, with some in the market predicting the ratio of Japanese stocks in GPIF's portfolio will rise.

The proposal by the Ministry of Health, Labor and Welfare would boost the ROI target for fiscal years 2025 through 2029 to 1.9% from 1.7%. The target is reviewed every five years. It was raised in fiscal 2010 and fiscal 2015 and left unchanged in fiscal 2020.