Japan Fin Min Says GPIF May Review Portfolio If Investing Conditions Change

By Megumi Fujikawa

TOKYO--Japan's Finance Minister Satsuki Katayama said the nation's public pension fund could reconsider its portfolio allocation in the event of a significant shift in investment conditions.

"If the investing environment changes materially, we naturally need to ensure that reviews are conducted in a timely and appropriate manner, taking all those factors into account," Katayama said at a news conference Tuesday.

Potential catalysts for such a review include government initiatives to boost the nation's growth, which are in turn enhancing the attractiveness of Japanese assets, she added.

The comments came a few days after she said the government is looking into ways to encourage pension funds, including the Government Pension Investment Fund, to invest more in domestic instruments.

That sent Japanese government bond yields sharply lower and helped the yen recover some ground last week, though both have since retraced some of those moves. The 10-year JGB yield was last at 2.775%, while the yen stood at 162.40 against the dollar.

With about $1.8 trillion in assets, the GPIF is one of the world's largest pension funds, and a small realignment in its investment stance could affect global financial markets. It currently operates under a basic target allocation split equally across four asset classes: domestic bonds, domestic stocks, foreign bonds, and foreign stocks.

The GPIF reviews its portfolio allocation once every five years, and the current plan took effect in April 2025.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

July 13, 2026 22:00 ET (02:00 GMT)