On Tuesday, Japan’s Government Pension Investment Fund (GPIF) said it was seeking information on diversifying into illiquid assets such as bitcoin, gold, forests and farmland.
GPIF aims to improve its core investment portfolio, focusing on long-term sustainability, taking into account key social and economic changes. The study, which is in line with targets for fiscal year 2023, aims to gather information on investment elements.
GPIF said it will not offer compensation for the information provided, according to a Japanese translation of the announcement.
Despite actively seeking information, uncertainty remains about the company’s potential expansion into new investments.
GPIF seeks long-term investment returns for retirement benefits
GPIF currently invests in a portfolio covering both domestic and international markets. These include stocks, bonds and various government bonds. Moreover, the fund incorporates environmental, social and corporate governance(ESG) issues into its strategy to enhance long-term returns. With total assets of about $1.5 trillion , it is considered the largest pension fund in the world.
GPIF’s main goal is to support public pensions by generating investment returns over the long term. All this while minimizing risks to the pension system.
Cryptocurrencies attract pension funds
Pension funds’ interest in the cryptocurrency space is nothing new. South Korea’s National Pension Fund, for example, hit the headlines last year when it invested some 26 billion won ($20 million) in Coinbase shares.
Meanwhile, an April 2022 survey by the CFA Institute found that 94 percent of government and state pension plan sponsors are involved in cryptocurrency investments. In addition, it found that 62 percent of corporate defined benefit plans allocated funds to cryptocurrency investments.
