A $68 Billion Japan Pension Slashes Underperforming Active Funds

One of Japan’s biggest pension funds has slashed its holdings of actively invested funds while its top management pledged to tighten scrutiny of asset managers’ performance.

Tokyo-based Federation of National Public Service Personnel Mutual Aid Associations, which manages about ¥10 trillion ($68 billion) in assets, exited 10 out of the 27 active funds it invested in, in the year ended March. Active funds aim to beat market benchmarks, while passive funds are designed to mirror index moves.