Japan's Pension Funds Told to Boost Domestic Investment

Japan's ruling Liberal Democratic Party has submitted a proposal to boost domestic investment by pension funds. The Government Pension Investment Fund (GPIF), which manages $1.7-$1.8 trillion, is being urged to increase allocations to domestic private equity and venture capital.

The LDP wants GPIF to exceed its 5% target for alternative investments, including private equity, real estate, and infrastructure, by 2030. This would create a significant new source of demand for Japanese private assets.

GPIF has already issued a request for information on executing this shift and emphasized stronger corporate engagement expectations for external managers in its stewardship report.

In related news, the Nationwide Business Corporate Pension Fund is allocating 1% of its portfolio to cryptocurrency assets as a yen-hedging tool.