GPIF Watchers Say $1.75 Trillion Fund May Buy More Japan Stocks
- Reallocation to have ‘huge’ impact on market: NLI Research
- About half of analysts surveyed say foreign debt may be cut
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Japan’s $1.75 trillion state pension fund may step up purchases of domestic stocks and scale back on foreign bonds in a reallocation of assets that would ripple through global markets, a Bloomberg survey shows.
Almost half of the 21 analysts polled said the Government Pension Investment Fund will boost its allocation target for Japanese equities above the current 25% as part of a portfolio revamp from April. They said an increase in foreign bonds is highly unlikely, as it would involve yen sales that may weaken the currency.