Japan’s Government Pension Investment Fund (GPIF) could further diversify into alternative assets such as infrastructure and private equity following the continued poor performance of its domestic bond portfolio.
Its advisory panel has said that the 121tn yen ($1.23tn) GPIF should grow its exposure to risk assets after it recorded only minor gains following record domestic bond losses, Bloomberg reported.
In June it reduced its target allocation for domestic bonds from 67 per cent to 60oer cent, growing its exposure to overseas holdings.
Japan’s benchmark ten-year bond fell half a basis point to 0.685 per cent this week, the lowest globally and close to its lowest ever point in May 2010, the report added.
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