The World’s Biggest Pension Fund Has a $26 Billion War Chest for Japan Stocks
- New investments could include ESG assets, FX-hedged debt: JPM
- Pension fund purchases to provide support for stocks: Shinkin
Pedestrians cross a road in Tokyo, Japan.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japan’s Government Pension Investment Fund has room to invest $26 billion in domestic stocks to keep holdings near its portfolio target, according to JPMorgan Chase & Co.
The world’s largest pension fund’s holdings of Japanese stocks fell to 23.6% of assets at the end of March, the lowest since March 2017. The weighting may have dropped to 23.3% as of July 5, meaning it can buy about 2.8 trillion yen ($26 billion) in shares if it rebalances in line with its target, according to JPMorgan’s securities unit in Japan.