GPIF

The Government Pension Investment Fund of Japan (GPIF) is a public pension fund established by the Japanese government in 2001 to manage the assets of the national pension system, including the National Pension and Employees’ Pension Insurance. Its mandate is to secure stable, long-term returns to fund pension benefits and to safeguard the financial sustainability of Japan’s pension system.

GPIF is one of the largest institutional investors in the world by assets under management. The fund operates with a degree of independence while remaining subject to ministerial oversight. Its governance structure includes a Board of Directors, an Investment Committee, and an Internal Audit function, with accountability and reporting standards established by law and related regulations.

Investment policy emphasizes long-term, diversified asset allocation designed to balance safety, liquidity, and return. The fund places investments across four major asset classes: Japanese equities, foreign equities, Japanese government bonds, and foreign government bonds. GPIF employs both passive and active management through external managers, with a focus on cost efficiency and risk management. The liability-driven approach aims to align investment outcomes with the long-term obligations to pension beneficiaries.

In the mid-2010s, GPIF undertook a major reform to broaden its asset mix beyond a heavy concentration in government bonds, increasing exposure to risk assets while maintaining safeguards. The fund regularly reviews its policy mix, governance practices, and risk controls to adapt to market conditions and demographic developments.

GPIF also pursues environmental, social, and governance (ESG) integration and stewardship as part of its investment process, and it discloses holdings, performance, and governance information in annual reports and on its website.