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Pension fund plans to buy $76 billion in government bonds
The Government Pension Investment Fund could purchase up to ¥12.3 trillion in additional Japanese government bonds if it raises domestic bond holdings to the upper end of its allocation band. The projection comes from Societe Generale and follows a call by the finance minister for greater domestic investment.
Jul 14, 2:18 AM·1m read1 source
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The Government Pension Investment Fund could buy as much as ¥12.3 trillion ($76 billion) of additional Japanese government bonds without changing its asset allocation mix, according to Societe Generale. The projection assumes the fund gradually increases its domestic bond holdings to the upper end of its existing allocation band, lifting the weighting to 31 percent from 26.9 percent as of March.
The $1.8 trillion fund maintains benchmark allocations of 25 percent each to domestic bonds, domestic equities, foreign bonds and foreign equities, according to its latest review in March 2025. Officials have stated there are no plans to alter the benchmark portfolio allocations but are exploring ways to encourage greater domestic investment within the existing framework.
The estimate follows the finance minister's call last week for large pension funds, including the GPIF, to increase investment in domestic assets. The same statement said expectations remain that a near-term change to the fund's strategic asset allocation is unlikely.
