GPIF Should Sell 25 Trillion Yen of Local Bonds, Ito Says
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The world’s largest retirement fund should seek to sell 25 trillion yen ($245 billion) of Japanese bonds as soon as possible, said the head of a panel that advised the government on overhauling pension investments.
The Government Pension Investment Fund should start shifting from local debt to other assets now, and the Bank of Japan could be a buyer, Takatoshi Ito said in an interview in Tokyo today. The fund should pare total bond holdings to about 35 percent of assets, he said. GPIF had 55 percent of its 128.6 trillion yen in domestic bonds and 11 percent in offshore debt as of Dec. 31.