[NEWS] GPIF seeks information on crypto assets to diversify its investment operations

On the 19th, the Government Pension Investment Fund (GPIF) announced that it would be requesting information on crypto assets (virtual currencies) in order to diversify its asset management.

GPIF is currently seeking basic information on crypto assets such as Bitcoin (BTC), forests, farmland, and gold, which are low-liquid assets other than domestic bonds, domestic stocks, foreign bonds, foreign stocks, real estate, etc. that it manages. It also seeks information on investment cases of overseas pension funds, their investment philosophies and organizational structures, and how institutional investors incorporate them into their portfolios.

GPIF diversifies its investments into alternative assets such as domestic and foreign stocks, bonds, infrastructure, and real estate. As of December 2023, the amount of assets under management is a huge amount, about 225 trillion yen. It is currently recognized as the world's largest pension fund. The management companies do not include small companies, and are dominated by large companies such as Nomura Securities.

In addition to a wide range of basic knowledge about the assets covered by the information provision, we are also seeking information on the current situation, such as how overseas pension funds are incorporating these assets into their portfolios, and actual investment examples.

GPIF's diversification of asset management has been particularly notable in recent years. Since the fall of 2022, it has been a hot topic that it has selected 56 new active funds for North American stocks, developed country stocks, and Japanese stocks.

In terms of content, 23 active funds for Japanese stocks, 19 and 14 active funds for North American stocks and developed country stocks, respectively, have been adopted. According to the published materials, the contract was signed on December 7, 2023, and the management was entrusted to major companies such as Pictet Japan, Sumitomo Mitsui Trust Asset Management, and Tokio Marine Asset Management.

If crypto assets are newly adopted as an investment target in the future, this will further diversify management and will also have a strong impact on the crypto asset market.

Please note that this announcement is merely a request for information and does not mean that it has decided to make crypto assets an investment target in the future. According to the announcement, the GPIF will consider whether to conduct further research based on the collected information. However, since they are requesting information, there is a good chance that they will invest in crypto assets in the near future.

GPIF uses data science when selecting funds. At a Bloomberg event in 2023, Chairman Miyazono Masayoshi stated his intention to select funds "regardless of factors such as the size of assets under management and whether they are new or established."

The background to collecting crypto asset information is thought to be the approval of a Bitcoin spot ETF in the United States, which has had an impact on the market since its listing.

Reference: GPIF
Image: Shutterstock

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