Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with $1.5 trillion in assets under management, is exploring the potential inclusion of Bitcoin, gold, and other assets it considers illiquid in its investment portfolio.
This development was revealed after the GPIF announced the development of a new long-term investment approach after it historically held a conservative investment approach favoring established asset classes.
The new approach comes in response to “major changes in the economy and society, and rapid technological progress” as Cointelegraph first reported.
The pension fund’s focus is now to gather comprehensive information about diversifying into alternative assets it considers “illiquid,” including the flagship cryptocurrency Bitcoin and precious metals like gold, among others.
Historically, the GPIF has invested primarily in stocks, bonds, real estate, private equity, and infrastructure. The pension fund noted:
In addition to basic information about the assets targeted for information provision, we are also seeking information on how overseas pension funds incorporate them into their portfolios and actual investment cases.
It’s worth noting the move is for a request for information that doesn’t necessarily mean the GPIF is going to be investing in any new assets like Bitcoin or gold, but rather that it is considering delving deeper based on the research it collects.
The Government Pension Investment Fund of Japan was founded in 2006, primarily invests in key infrastructure funds that support vital societal and economic functions. The firm’s investment portfolio encompasses assets from both domestic and international markets.
The fund has 225 trillion Japanese yen in assets under management, equivalent to roughly $1.54 trillion.
Featured image via Pixabay.
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