Japan Plans to Shift Billions in Pension Funds to Domestic Assets, Threatening Foreign Managers' Revenue

According to Jin10 Data, Japan's government is planning to increase domestic asset allocation for its state pension fund, potentially costing global asset managers like State Street and Voya Financial tens of millions in management fee revenue. On Friday, Japan's Finance Minister Katsunobu Kato stated the government aims to significantly boost national pension fund investments in domestic assets.

As the world's largest pension fund, Japan's Government Pension Investment Fund (GPIF) manages $1.8 trillion in assets, with nearly $93 billion exposed to overseas investments almost entirely managed by foreign fund managers. For the fiscal year ending March 2025, GPIF relied on 35 external managers for international investments, collectively generating approximately $130 million in management fees.