The need for transparency makes it no easy task for Japan's national pension fund to fully leverage artificial intelligence tools in asset management processes, its CIO tells AsianInvestor.
The Japanese state pension fund can dismiss its dethronement as the world’s largest asset owner, as relative rankings are immaterial to its marathon mission of delivering long-term returns.
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.
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.
Japan’s Government Pension Investment Fund is managing the majority of its assets internally, with some fund managers losing ground and others increasing the value of their mandates.