President of GPIF Norihiro Takashi in an interview reported by Bloomberg
- waiting to see results of negative rates
- positive results from negative rates may take time
- GPIF has already started ccy hedging
Not new news as it was on the Bloomberg site earlier but hitting the headlines now/again. USDJPY has a further wobble to 110.73 with yen pairs all following suit and posting session lows.
"The GPIF is looking to hedge dollar and euro-based investments, President Norihiro Takahashi said in an interview, according to the Nikkei. Takahashi, who took the role at the start of this month, said that while he doesn't rule out protecting emerging-market assets, the fund will concentrate on major currencies because of the size of positions denominated in them."
GPIF increased stocks and bonds in 2014 when the yen was tumbling and now has 36% of holdings in such assets, A stronger yen weighs on the value of overseas investments when repatriated.
The Government Pension Investment Fund is the world's largest pension fund at $1.3trln
