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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."