GPIF Should Seek 1.7% Return Plus Wage Growth, Panel Says
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The world’s largest pension fund should aim for yearly returns of 1.7 percent plus the rate of wage growth, a Japanese government advisory panel reiterated.
The 128.6 trillion yen ($1.25 trillion) Government Pension Investment Fund should adopt that goal as it is suitable under all eight scenarios envisaged for the country’s economic outlook, according to a committee formed to help the health ministry decide on economic assumptions for investment targets. The group met today to finalize a draft report issued last week. The return figure may need to be increased if a health ministry review of pension finances finds that it’s not enough, Kazuo Ueda, a panel member, said.