August 13, 2014

GPIF Considers 5% Allocation to Private Assets

Jiji Press yesterday reported "The Government Pension Investment Fund plans to create a new portfolio category for investments in assets such as infrastructure, real estate and private equity, sources said." and"GPIF is in the final stages of deciding the new quota’s size but plans it to be the portfolio’s smallest, possibly representing around 5 percent of total assets, the sources said."

It also reported "The short-term assets category currently accounts for 5 percent of total assets and is a category that GPIF is considering excluding from its new portfolio." 

As it appears that the new alliterative allocation simply replaces the cash allocation, it will not affect allocations to other assets such as bonds and equities.