Japan’s biggest pension fund faces more pressure to deliver

[captainspoke]

At ¥246 trillion ($1.6 trillion), they have the same challenges as warren buffett--so much money that they're limited to large investments, no longer small or nimble.

[sutebayashi]

I have no idea why they'd buy Japanese bonds, especially with the return on those, and current inflation.

Probably to keep the government content.

The BOJ has the same problem, they want to own less but long term interest rates would jump if these big holders want to reduce holdings at anything faster than dead snails pace.

[Bubblegun]

I have no idea why they'd buy Japanese bonds, especially with the return on those, and current inflation.

Probably to keep the government content.

The BOJ has the same problem, they want to own less but long term interest rates would jump if these big holders want to reduce holdings at anything faster than dead snails pace.

That's probably the most logical and realistic answer. :lol:Snails pace! I wonder if any one would agree with the japanese allocation? MMMmmmmm.
Now theres a thought!.

[Deep Blue]

The BoJ owns a far larger stock of JGBs than GPIF. I think GPIF could reduce their holding without putting significant upward pressure on yields.

The BoJ, not so much.

[captainspoke]

Just curious--what's the asset allocation for some other pension funds around the world?

(true, some places are 100% ponzi, but humor me)

[captainspoke]

Not asset allocation, but this might be of interest--title of yahoo finance article says US, but it offers grades for a bunch of countries:

US Retirement System Gets a C+ in Global Study

'Adequacy' is a squishy concept, and the article doesn't say whether it's just 国民年金 being graded on its own, or that together with 厚生年金, and so on.

[beanhead]

'Adequacy' is a squishy concept, and the article doesn't say whether it's just 国民年金 being graded on its own, or that together with 厚生年金, and so on.

You can download the original Mercer report if you want more details. They explain the methodology a bit.