Japan’s GPIF maintains 50% stock ratio in $1.8tn portfolio - Nikkei

Published 11/03/2025, 14:48
© Reuters.

Investing.com -- Japan’s Government Pension Investment Fund (GPIF), recognized as one of the world’s largest institutional investors, has decided to uphold its policy of dedicating 50% of its portfolio to stocks in fiscal 2025 and beyond, according to Nikkei. The GPIF’s portfolio is valued at $1.8 trillion.

In recent times, there were anticipations about an increase in this ratio. This speculation was fueled by a proposal from Japan’s Ministry of Health, Labor, and Welfare, which was presented in December of last year. The ministry had suggested altering the return on investment (ROI) target it sets for GPIF. The proposed change was to raise the ROI from 1.7% above the wage growth rate to 1.9%.

Despite the proposal, GPIF has chosen to stick to its existing investment principle. This decision means that half of its massive portfolio will continue to be invested in stocks for the foreseeable future. This decision puts an end to the speculation that was sparked by the ministry’s proposal.

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