The largest pension fund globally, Japan’s GPIF, is increasing equity allocations and foreign investments at the expense of fixed income to move into riskier assets.
It’s part of what the media has called “Abenomics”, the not too creative neologism of the prime minister and his approach to the economy and how to fight the past decade of deflation.
GPIF is upping foreign stocks from 9% to 12%, as well as foreign bonds from 8% to 11%. Domestic bonds will be decreased from 67% to 60%. It is the first change in asset allocation in seven years, and other pension funds in Japan are likely to follow. Now it is up to asset managers to maneuver the policy and selection processes and get a piece of the pie.
We are happy to help.
E=MC2 … The era of multi-convergence in global investment management.
I invite you to follow me on twitter @danenskat
(c) Enskat Associates 2013
(c) Warren Enskat 2013
More details on the global M&A in the asset management industry can be found in EAQ, a regular asset management review featuring thought leaders globally.
Warren Enskat Group 