Recording the worst quarterly investment return since April last year, the world’s largest pension fund was a net seller of equities in the second quarter.
Experts believe the Japanese pension fund’s decision will have limited impact on global investors’ appetite for China sovereign papers, and any impact would be felt more in Japan’s public sector.
Generally, however, Asian pension funds’ allocations to alternative assets demonstrated only a modest increase of 0.6% from 2019 to 2020.
The world’s largest pension fund greatly benefitted from its nearly 50% asset allocation to equities after the global stock rally since April last year.
The fund's move to repurpose its asset allocation and alter its management structure, as well as commit to improved governance, earns it an Institutional Excellence Award.
The world’s largest pension fund is embarking on significant structural changes that will give global asset managers something to think about, as a model for the wider industry to follow.