Ja­pan's pen­sion funds boost for­eign as­sets to record

The Pak Banker - - 6BUSINESS -

Ja­pan's pub­lic pen­sion funds boosted hold­ings of for­eign as­sets to a record in the three months through De­cem­ber, while re­duc­ing their in­vest­ment in lo­cal sovereign debt to the least in more than a decade.

The funds bought a net 1.3 tril­lion yen ($11.5 bil­lion) of overseas se­cu­ri­ties, bring­ing their to­tal to 59.5 tril­lion yen, and also added to in­vest­ments in do­mes­tic eq­ui­ties, Bank of Ja­pan data pub­lished Fri­day show. They off­loaded a net 704.4 bil­lion yen in Ja­panese gov­ern­ment bonds, leav­ing them hold­ing 51.8 tril­lion yen of such debt, the lowest to­tal since the third quar­ter of 2004.

The shifts may re­flect trad­ing by smaller peers of the $1.2 tril­lion Gov­ern­ment Pen­sion In­vest­ment Fund, which de­cided last year to align their in­vest­ment strate­gies with GPIF's from Oc­to­ber. The re­tire­ment man­agers' stock buy­ing also came af­ter a third-quar­ter rout in eq­ui­ties eroded the value of shares they al­ready held, tak­ing them fur­ther from tar­get al­lo­ca­tions.

Ja­pan's Topix index of stocks re­bounded 9.7 per­cent in the three months through De­cem­ber af­ter plung­ing 13 per­cent the pre­vi­ous quar­ter as China's shock cur­rency de­val­u­a­tion drove stocks around the world lower. A mea­sure of global eq­ui­ties rose 4.6 per­cent af­ter a 9.9 per­cent drop the three months be­fore. Pen­sion funds for civil ser­vants, lo­cal gov­ern­ment of­fi­cials and pri­vate school teach­ers, which man­aged about 30 tril­lion yen at the time, said a year ago they would adopt targets of 25 per­cent each for do­mes­tic and for­eign eq­ui­ties, 35 per­cent for do­mes­tic bonds and 15 per­cent for overseas debt as of Oct. 1.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.