February 2020

07Feb

World’s Largest Pension Fund Gains on Stocks, Foreign Debt

The world’s biggest pension fund posted a gain for a fourth consecutive quarter, with foreign stocks providing the best return among assets amid a thaw in trade tensions between the U.S. and China. Japan’s Government Pension Investment Fund returned 4.6%, or 7.4 trillion yen ($67 billion), in the quarter ended Dec. 31, with assets totaling 168.9 trillion yen, it said Friday in Tokyo. Foreign stocks were the fund’s best performing investment, gaining 9.7%, while domestic equities added 8.6%. The...

February 7, 2020
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January 2020

29Jan

Japan. Wanted: rational pension reform

The government is required by law to examine the long-term financial health of Japan’s public pension system every five years. In the latest review released last August, it was confirmed that in most of the scenarios considered, the income substitution rate — the ratio of pension payouts to the after-tax income of the working generation — will be maintained at 50 percent or more. Read also The 7 biggest fintech trends to watch in 2020 This means that retirees will...

January 29, 2020
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17Jan

Japan supports IDB’s social projects in Caribbean

The Inter-American Development Bank (IDB) says it has partnered with Japan's Government Pension Investment Fund (GPIF) in promoting and developing “socially responsible capital markets” through investments in IDB social bonds focused on education-youth-employment (EYE) in Latin America and the Caribbean. The Washington-based financial institution on Wednesday said that its social (EYE) bonds “foster human capital development from the classroom to the workplace”. “The funds raised through them will finance projects in Latin America and the Caribbean that promote effective...

January 17, 2020
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02Jan

Japan’s GPIF is right — short selling is downright irresponsible

When the Japanese Government Pension Investment Fund (GPIF) announced it was going to stop stock lending, the decision was met with a mixed response from commentators. Among them was a damning conclusion from the Financial Times’ Lex column, which suggested this was another example of Japan Inc “scoring an own goal”. I could not disagree more. The GPIF is one of very few major financial institutions not only to have thought through its own broader responsibilities but also to have put...

January 2, 2020
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December 2019

23Dec

Japan, European Development Bank Launch Social Bond Initiative

Japan’s $1.48 trillion Government Pension Investment Fund (GPIF) and the Council of Europe Development Bank (CEB) have launched a partnership to promote and develop sustainable capital markets. Their focus will be on social bonds, and the incorporation of ESG assessments in fixed-income investments. “GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making,” Hiro Mizuno, CIO of GPIF, said in a statement. “We regard the purchase of green, social and sustainability bonds as one of...

December 23, 2019
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November 2019

29Nov

The Effect of Aging on the Age-wage Profile

By Toshikatsu Inoue Despite its importance, many macroeconomic models do not capture the changes in the age-wage profile over time. The flattening of the age-wage profile in Japan and the relative increase in the aging workforce suggests the existence of demand law in relative labor inputs and wages of each age, which is abstracted from the standard macroeconomic model. In this study, we build a model using the aggregate production function that creates a downward slope labor demand curve....

November 29, 2019
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28Nov

Japanese gov’t may include more part-time workers in pension system

The Japanese government may look to include more part-time workers into the national employee pension system by mandating companies with relatively small workforces to enroll in the program, local media reported Wednesday. Under the current system, firms employing more than 501 staff are required to participate in the program. However, the government is mulling lowering the figure to increase the number of workers enrolled in the employee pension program. In a bid to address concerns among workers about having...

November 28, 2019
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21Nov

World’s Largest Pension Fund Keeps Analysts in Dark on Portfolio

Japan’s Government Pension Investment Fund’s decision to not disclose details of its quarterly allocation breakdown has some analysts saying that the world’s biggest pension fund is backtracking on transparency. Read also Impact investing is about more than saving the world In a statement on Nov. 1, GPIF President Norihiro Takahashi said the fund won’t disclose the allocation breakdown, amounts and investment income for each asset class this fiscal year, as it reviews the composition of its basic portfolio, which totals...

November 21, 2019
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05Nov

In Japan’s ageing society, elderly are determined to resist the push towards cashless payments

Tokyo wants to double the ratio of cashless settlements to 40 per cent by 2025 and to 80 per cent eventually to spur labour productivity However, Japanese households hold more than half of their assets in cash and deposits and that proportion rises with the elderly Cash is king in Japan, and more so for the country’s rapidly ageing population who are still deeply reluctant to give it up. Prime Minister Shinzo Abe’s push to make more Japanese –...

November 5, 2019
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October 2019

30Oct

Can migrants, robots and retirees help to combat the demographic crisis in an ageing Japan?

Turning 100 is no longer a novelty in Japan. Itsuko Inoue recently celebrated her 100th birthday, joining the ranks of Japan’s 71,000 centenarians. A native of Tokyo, Inoue survived both the earthquake of 1923 and the Second World War before going on to have five daughters. She will soon receive a certificate from Japan’s Ministry of Health, Labour and Welfare, which is responsible for congratulating the new centenarians who grow in number every year. Read also What Is The...

October 30, 2019
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