As the world¡¯s biggest pension manager moves closer to putting more money in risky assets, the ruling Liberal Democratic Party¡¯s deputy policy chief says the fund needs to change its governance first.
Japan should submit a bill in the next Diet session to overhaul the structure of the ?126.6 trillion ($1.2 trillion) Government Pension Investment Fund, Yasuhisa Shiozaki said in a speech at Bloomberg¡¯s offices in Tokyo on Tuesday. With the fund working on a separate investment-strategy review, discussion is needed on whether it¡¯s right to alter asset allocations before the law change, he said.
¡°We have to fix GPIF¡¯s governance structure in the extraordinary session and then rework its portfolio,¡± said Shiozaki. ¡°Governance reform is paramount and it¡¯s important to get it done before the weightings get changed this fall.¡±
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