Latest news with #GPIF
Bloomberg
22-05-2025
- Business
- Bloomberg
Japan Could Ask State-Owned Firms to Buy Bonds, Barclays Says
Japan may consider asking government-owned entities to support the nation's bond market if the selloff in longer-dated debt doesn't abate, according to Barclays Plc 's global chair of research. Firms with significant state influence like Japan Post Holdings Co. and the Government Pension Investment Fund could be 'quietly told' to buy more domestic bonds, Barclays' Ajay Rajadhyaksha said in an interview. While this isn't his base case and may not progress beyond a thought exercise, in theory such a scenario could trigger sales of US Treasuries in order to pay for domestic bonds.
Bloomberg
20-05-2025
- Business
- Bloomberg
Japan's GPIF to Invest $500 Million in US PE Firm Thoma Bravo
Japan's Government Pension Investment Fund said it's investing $500 million in a fund managed by US private equity firm Thoma Bravo, as part of its effort to boost alternative assets. GPIF, one of the world's largest pension funds, said in a document that it plans to invest in the fund for 10 years. The government-backed investor signed an agreement sometime by the end of March with Thomas Bravo, which specializes in the technology industry. A GPIF spokesperson declined to provide further details.
Yahoo
23-04-2025
- Business
- Yahoo
Japan lawmakers urge pension fund to invest in domestic private equity
By Makiko Yamazaki TOKYO (Reuters) -A group of Japan's ruling party lawmakers on Wednesday called on the country's top public pension fund GPIF to expand investment in domestic private equity and venture capital funds to strengthen the domestic private asset investment chain. Global private equity firms such as KKR and Bain Capital have thrived in Japan due to the country's corporate governance reform, rising shareholder activism, and the government's push for industry consolidation. But the presence of Japanese private equity firms has been limited so far, with government-backed fund Japan Investment Corporation (JIC) often the only domestic non-strategic bidder in multi-billion-dollar deals. The call for the Government Pension Investment Fund (GPIF) to step up as well came in a proposal presented to Prime Minister Shigeru Ishiba from a group of lawmakers looking at the issue, the aim being to make sure that profits from such investments remain in Japan. "We always hear the likes of KKR and Bain help big companies overhaul themselves, but profits derived from such restructuring go to U.S. and Canadian pensions (which invest in those global private equity funds)," Fumiaki Kobayashi, a lawmaker and key member of the group, told reporters. Specifically, the group said in its proposal that GPIF should boost its alternative investments, including domestic private equity and venture capital. Domestic private equity funds should also "get involved in large-scale mergers and acquisitions," Kobayashi said. Alternative assets such as private equity, property and infrastructure account for just 1.6% in GPIF's massive 258.7 trillion yen ($1.82 trillion) portfolio, far short of a 5% limit. Former Prime Minister Fumio Kishida launched the policy group last year with dozens of lawmakers from the ruling Liberal Democratic Party to continue his key policy drive to beef up the country's $5 trillion asset management industry. ($1 = 141.7600 yen) Sign in to access your portfolio
Reuters
23-04-2025
- Business
- Reuters
Japan lawmakers urge pension fund to invest in domestic private equity
TOKYO, April 23 (Reuters) - A group of Japan's ruling party lawmakers on Wednesday called on the country's top public pension fund GPIF to expand investment in domestic private equity and venture capital funds to strengthen the domestic private asset investment chain. Global private equity firms such as KKR (KKR.N), opens new tab and Bain Capital have thrived in Japan due to the country's corporate governance reform, rising shareholder activism, and the government's push for industry consolidation. But the presence of Japanese private equity firms has been limited so far, with government-backed fund Japan Investment Corporation (JIC) often the only domestic non-strategic bidder in multi-billion-dollar deals. The call for the Government Pension Investment Fund (GPIF) to step up as well came in a proposal presented to Prime Minister Shigeru Ishiba from a group of lawmakers looking at the issue, the aim being to make sure that profits from such investments remain in Japan. "We always hear the likes of KKR and Bain help big companies overhaul themselves, but profits derived from such restructuring go to U.S. and Canadian pensions (which invest in those global private equity funds)," Fumiaki Kobayashi, a lawmaker and key member of the group, told reporters. Specifically, the group said in its proposal that GPIF should boost its alternative investments, including domestic private equity and venture capital. Domestic private equity funds should also "get involved in large-scale mergers and acquisitions," Kobayashi said. Alternative assets such as private equity, property and infrastructure account for just 1.6% in GPIF's massive 258.7 trillion yen ($1.82 trillion) portfolio, far short of a 5% limit. Former Prime Minister Fumio Kishida launched the policy group last year with dozens of lawmakers from the ruling Liberal Democratic Party to continue his key policy drive to beef up the country's $5 trillion asset management industry. ($1 = 141.7600 yen)
Reuters
23-04-2025
- Business
- Reuters
Japan state pension fund switches to foreign benchmark index excluding onshore China shares
LONDON, April 16 (Reuters) - Japan's Government Pension Investment Fund has switched the benchmark it uses for foreign equities for its $1.7 trillion of investments, to one that does not include onshore Chinese shares it said in a recent update. Some global investors have become nervous about owning domestic Chinese shares, known as A-shares, given global trade tensions and China's domestic economic challenges. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. The exclusion of China A-shares is due to the concerns that the pension's investment may be hindered by potential issues including international settlement, market liquidity, restrictions on foreign investors, frequent policy changes and securities transactions suspension, GPIF said in a statement on March 31. GPIF previously used MSCI's All Country World Index (ex Japan) as a benchmark for its investments in foreign equities, but it will use that benchmark also excluding China A shares for the five years from 2025, it said.
