The Government Pension Investment Fund (GPIF) of Japan, with assets under management reaching 225 trillion yen (approximately 48.38 trillion New Taiwan Dollars), announced today that it will collect information on diversified investments, including assets with lower liquidity such as Bitcoin and gold.
In a press release issued today, the GPIF announced the formulation of a new long-term investment policy to respond to “significant changes in the economy and society, as well as rapid technological advancements.” To address these new challenges, the GPIF has initiated a five-year research program to explore diversified investments centered around sustainability and risk management.
As part of this program, the GPIF is seeking information on diversified investments, including “illiquid assets” that are currently not invested by the GPIF, such as Bitcoin, gold, forests, and agricultural land.
According to Bloomberg, the GPIF’s current investment covers traditional assets such as domestic and foreign stocks, bonds, as well as alternative assets such as infrastructure and real estate. As of the end of December 2023, the GPIF’s assets under management amounted to approximately 225 trillion yen, making it the world’s largest pension fund.
In addition to seeking foundational knowledge about specific assets, the GPIF is also seeking practical case information from overseas retirement funds on how to incorporate relevant assets into their investment portfolios. The announcement aims to gather information and does not imply that the GPIF will expand its investment targets in the future. The company will evaluate whether to conduct further research based on the collected information.
Furthermore, according to CoinGape, the GPIF has taken a series of proactive measures in recent years to achieve portfolio diversification, particularly in response to the market downturn experienced in 2022. Notably, the GPIF has chosen to invest in 56 active funds in various stock markets, including North America, developed economies, and Japan.
The reason behind the GPIF’s pursuit of diversified investments lies in its recognition of the importance of diversifying investments across different asset classes to optimize portfolio performance and minimize exposure. By expanding its investment scope beyond traditional assets, the GPIF seeks to enhance its resilience to market volatility and harness new opportunities in different fields.
Looking ahead, the GPIF is prepared to further explore alternative investment areas and seek information on Bitcoin and gold. If the GPIF ultimately decides to include Bitcoin and gold in its investment portfolio, it may have a profound impact on the cryptocurrency and precious metal markets. As one of the world’s largest institutional investors, the GPIF’s recognition of emerging assets is also expected to promote mainstream adoption of emerging industries and strengthen investor confidence.