Finance Minister Katayama urges GPIF to increase domestic investments, potentially strengthening the yen amid rising inflation.
Japan’s Finance Minister Satsuki Katayama called on the Government Pension Investment Fund (GPIF) to boost domestic asset allocations, citing inflation concerns. The $1.81 trillion fund, one of the world’s largest, adjusts its portfolio every five years, making even minor shifts significant for yen and JGB demand.
GPIF currently holds ¥293.6 trillion in assets, with allocations historically tilted toward global markets. Katayama’s remarks follow a 16% year-to-date rise in Japanese equities (EWJ) and a 33% gain over the past year, reflecting growing investor interest in domestic assets.
The move could channel tens of billions into yen-denominated assets, providing a tailwind for the currency as Japan grapples with 2% inflation for the first time in decades.