GPIF to Adopt Code to Prod Companies to Improve Returns
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Japan’s government pension fund is adopting a state plan in which asset managers push companies to boost profits as the world’s largest pool of retirement savings seeks to increase its own investment returns.
The 128.6 trillion yen ($1.27 trillion) Government Pension Investment Fund will sign up to the nation’s new stewardship code, it said in a statement today. GPIF will create guidelines for its external stock managers for complying with the principles and evaluate their performance in doing so, it said. The plan aims to get companies to use capital more efficiently in a nation where return on equity is half the global average.