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Japanese $1.5T Trillion Asset Manager Now Eyes Bitcoin for Diversification

Published 19/03/2024, 17:00
© Reuters.  Japanese $1.5T Trillion Asset Manager Now Eyes Bitcoin for Diversification
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  • The world’s largest pension fund, Japan’s GPIF, is exploring Bitcoin as an investment.
  • GPIF is exploring diversifying its portfolio beyond traditional holdings like stocks.
  • GPIF clarified that this is a preliminary step, and investment targets will hinge on its research findings.

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund boasting $1.5 trillion in assets under management, has announced its intention to explore diverse investment avenues, including Bitcoin, gold, forests, and farmland.

This development was captured in a recent report by Bloomberg Japan, which revealed the GPIF’s decision to seek information on expanding its investment horizon. GPIF manages a colossal sum of approximately 225 trillion yen as of December 2023. However, the Japanese pension fund is now looking to diversify further by considering previously untapped assets like Bitcoin alongside traditional holdings in stocks and bonds.

The fund’s current portfolio already includes a mix of domestic and foreign equities, bonds, and alternative assets such as infrastructure and real estate. Accordingly, the move to seek more information about Bitcoin signals a potential shift towards more unconventional investments.

GPIF’s interest extends beyond mere curiosity; it aims to gather insights into how other pension funds worldwide incorporate such assets into their portfolios and practical investment experiences.

In recent years, GPIF’s endeavors to enhance operational sophistication and diversify its portfolio have garnered significant attention. Since 2022, the fund has handpicked 56 active funds spanning North American, developed countries, and Japanese stocks, sparking considerable market interest. Looking ahead, the potential inclusion of Bitcoin as a new investment target could propel GPIF’s diversification efforts even further.

While the announcement has stirred speculation about the fund’s future investment strategies, it is crucial to note that this initiative is merely a fact-finding mission. GPIF clarified that this is a preliminary step, and any expansion of investment targets will hinge on the findings and subsequent research.

The post Japanese $1.5T Trillion Asset Manager Now Eyes Bitcoin for Diversification appeared first on Coin Edition.

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