Japan’s Government Pension Investment Fund, which oversees the world’s largest pool of retirement savings, added Wellington Management Co. to help with active management of foreign-equity investments.
GPIF hired Wellington International Management Co., a unit of the Boston-based company, to assist in managing such investments, according to a statement on its website today. The firm will use the MSCI Kokusai Index as its benchmark, the GPIF statement said. Wellington Management, the parent company, had about $774 billion in client assets under management as of June 30, according to its website.
GPIF held 13 percent of its 124 trillion yen ($1.19 trillion) in assets, or 16.7 trillion yen, in international stocks as of Sept. 30, according to its quarterly report. Wellington International joins eight other active foreign-equity managers including Amundi Japan Ltd. and BNY Mellon Asset Management Japan Ltd., whose selection GPIF announced in a statement on its website on Sept. 2.
GPIF, with a target allocation to Japanese bonds of 60 percent of holdings, should look at investing more in overseas assets, an expert panel told the government in a report Nov. 20.
“By buying foreign assets, it will support a weakening yen,” Takatoshi Ito, chairman of the advisory group, said in an interview on Dec. 6 “This isn’t a bad thing for the current state of Japan’s economy. It’s not going to create a bubble” he said, adding that the panel’s main objective is to boost returns for the Japanese populace.
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