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11 Aug 2014
GPIF to temporarily scrap cap on domestic stockholdings - Nikkei
FXStreet (Bali) - According to the Nikkei, Japan's Government Pension Investment Fund (GPIF) has temporarily scrapped its cap on domestic stock-holdings, meaning that the fund can now buy more domestic shares even if the percentage exceeds the current upper limit of 18%, Nikkei said.
Key Quotes - Nikkei
"For example, currently, the GPIF's investing guidelines suggest that the percentage of domestic stocks in its entire assets should be around 12%. But it also allows the percentage to vary within the range of 6-18%."
"This is a provisional decision until September, when new guidelines are to be adopted. The percentage of domestic stocks that the fund can handle is expected to be raised to the 20% range after September, meaning the fund could purchase another several trillion yen worth of Japanese stocks."
"The Committee also determined Aug. 5 that both lower and upper limits on holdings of domestic stocks would be removed until September, which would allow fund managers at the GPIF to manage the assets more dynamically."
Key Quotes - Nikkei
"For example, currently, the GPIF's investing guidelines suggest that the percentage of domestic stocks in its entire assets should be around 12%. But it also allows the percentage to vary within the range of 6-18%."
"This is a provisional decision until September, when new guidelines are to be adopted. The percentage of domestic stocks that the fund can handle is expected to be raised to the 20% range after September, meaning the fund could purchase another several trillion yen worth of Japanese stocks."
"The Committee also determined Aug. 5 that both lower and upper limits on holdings of domestic stocks would be removed until September, which would allow fund managers at the GPIF to manage the assets more dynamically."