Japan to Raise Investment Return Target for Public Pension Funds

   Tokyo, Dec. 2 (Jiji Press)--Japan's welfare ministry plans to raise the investment return target for public pension funds from the current 1.7 pct to a record high of 1.9 pct for the five years from fiscal 2025, amid growing expectations of continued wage and price increases, it was learned Monday.
   The ministry presented the higher target at the day's meeting of the social security council, which advises the welfare minister. It aims to formally adopt the new target by the end of the current fiscal year through March 2025.
   The ministry will then instruct the Government Pension Investment Fund to review its investment portfolio to meet the new target.
   The ministry sets a new investment target every five years as part of a review of pension finances. The target is adjusted to reflect wage growth and is based on estimated future investment performance and the sophistication of the GPIF's investment capabilities.
   As the GPIF's annual investment return was 4.24 pct from fiscal 2001 through fiscal 2023, a ministry official said that the new target will be "reasonable" and "realistic."

(2024/12/02-15:42)

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