Japan's US$1.7 trillion fund boosts ESG holdings as others flee
GPIF held about 18.2 trillion yen (S$160.5 billion) of assets tracking ESG indexes at the end of March – or 14.7 per cent of the fund's equity investments – up from 17.8 trillion yen a year earlier, according to documents published on Friday (Jul 4). The fund posted a quarterly loss on a declining dollar and weaker domestic assets.
ESG funds have experienced record outflows as many investors shun a strategy that has been plagued by lacklustre returns, regulatory fatigue and political backlash, particularly from President Donald Trump's administration in the United States. GPIF and Norway's US$1.9 trillion sovereign wealth fund are seen as rare examples of major investors that are continuing to support sustainability-related securities.
Japan has a positive outlook for ESG investments through the rest of the year, supported by GPIF's plans to continue to add green holdings and a push by the Tokyo Stock Exchange to overhaul corporate governance, according to Bloomberg Intelligence. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
Trump says will impose 25% tariffs on Japan, South Korea from Aug 1
WASHINGTON: US President Donald Trump said on Monday (Jul 7) he would impose a 25 per cent tariff on goods from Japan and South Korea starting on Aug 1, posting letters to the leaders of those countries on his social media platform. In his first letters to trading partners ahead of a deadline to reach a deal, Trump penned near-identically worded letters to the leaders of Japan and South Korea. Trump said the tariffs would apply from Aug 1 because their trading relationships with Washington were "unfortunately, far from reciprocal".
CNA
3 hours ago
- CNA
Dollar firms against peers as investors brace for Trump tariff deadline
NEW YORK :The dollar firmed against other major currencies on Monday, after remarks from U.S. officials offered little clarity on the outlook for tariffs, days ahead of a crucial deadline. Most U.S. trade partners face the prospect of steeper duties at the end of the 90-day moratorium on U.S. President Donald Trump's "Liberation Day" reciprocal tariffs on Wednesday. Trump clarified on Sunday that the new rates would take effect from August 1. He said he will name some dozen countries later on Monday that are receiving letters with their new, higher levies, and he threatened an additional 10 per cent tariff on nations aligning with what he deemed to be the "anti-American" policies of the BRICS emerging economies. "It still feels like this administration is trying to find ways to avoid going all out on fresh tariff positions. We have people talking a (lot) about it, but talking and doing are two entirely different things," said Chris Beauchamp, chief market analyst at IG. "They (the United States) saw what happened with the volatility in April, and I don't think they want to wish that again." Options data reflected that currency markets were pricing in a limited resurgence in volatility ahead of the tariff deadline on expectations further extensions on the deadline were possible. The dollar index, which measures the currency against six major counterparts, rose 0.34 per cent to 97.294 and briefly hit a one-week high. The index extended gains from last week when data reflecting labour market resilience pushed back expectations for imminent monetary policy easing by the Federal Reserve. Still, the index is close to a 3-1/2-year trough and has declined 10 per cent so far this year as investors questioned the safe-haven status of the U.S. currency and reassessed earlier expectations that the U.S. could be spared in the event of a global economic slowdown. The dollar inched up 0.25 per cent to 0.797 against the Swiss franc on Monday, near the January 2015 low it revisited in the previous week. The euro slipped 0.41 per cent to $1.1738 having rallied over 13 per cent so far this year. The dollar reversed an earlier decline and rose 0.78 per cent at 145.725 yen, reaching a one-week high. Investors are concerned that Tokyo and Brussels might not be able to secure deals with Washington ahead of the deadline as progress on agreements with Japan and the European Union has been slow, despite multiple rounds of negotiations. Sterling weakened 0.08 per cent to $1.364, but stayed near its strongest level since October 2021. Currencies positively correlated to risk appetite, such as the Aussie dollar and the New Zealand dollar lost 0.61 per cent and 0.63 per cent, respectively ahead of monetary policy decisions in both countries in the coming two days. The Reserve Bank of Australia is widely expected to cut the cash rate by another quarter point on Tuesday, while New Zealand's central bank is predicted to hold rates steady on Wednesday. U.S. policy uncertainty weighing on the dollar "may not be as potent as in early April, but we think this correlation still matters," Paul Mackel, global head of FX research at HSBC said.
Business Times
3 hours ago
- Business Times
Tesla short sellers set to pocket about US$1.4 billion in profits after stock slump
[NEW YORK] Traders are set to make about US$1.4 billion in paper profits from their short positions in Tesla shares on Monday (Jul 7) after CEO Elon Musk's plans to launch a new US political party heightened concerns about his commitment to the company's future. The company's shares slumped 7.5 per cent in early trading after Musk's political move, which followed an open feud with Donald Trump over the US president's tax-cut and spending bill. At a price of US$296, investors betting against the EV-maker are on tack to make about US$1.4 billion in profits, according to data analytics firm Ortex. Short sellers had clocked more than US$4 billion in profits on June 5, a day when Tesla saw its biggest single-day drop in market value after Trump and Musk's discord erupted into an all-out social media brawl. Tesla's shares fell 7.5 per cent at US$291.50, having lost more than 21 per cent so far this year. REUTERS
