GPIF urged to revise domestic bond-dominated investment portfolio

A Japanese government advisory panel on Thursday urged the Government Pension Investment Fund to revise its investment portfolio dominated by domestic bonds.

The division of the Social Security Council said the GPIF does not have to specify domestic bonds as a main investment target at a time when bond prices are predicted to decline on rising interest rates in the transition from deflation to inflation.

It asked the manager of public pension fund investment to consider a wide range of new investment targets including real estate investment trusts.

Another government panel last November recommended the GPIF invest more in high-risk assets including stocks to proactively improve investment returns.