GPIF seeks better beta through ESG
You can't beat the market if you are the market. That's reality for Japan's behemoth pension fund; therefore, it looks to improve overall returns by engaging and investing with an ESG focus.
You can't beat the market if you are the market. That's reality for Japan's behemoth pension fund; therefore, it looks to improve overall returns by engaging and investing with an ESG focus.
GPIF’s Hiro Mizuno and AP2’s Eva Halvarsson stressed the importance of combating short-termism at every level of the investment chain and throughout the organisation, to forge sustainability.
Japan’s GPIF has only recently moved into equities, while ADIA has a rich history of investing in a variety of asset classes. The returns of both giants show the benefits of diversification.
The $1.26 trillion GPIF fulfils stewardship duties by promoting engagement between its external asset managers and investee companies. Fund managers have stepped up their efforts in response.
With a unique long-term horizon – 100 years – Japan’s GPIF takes a different view of investing but is pragmatic enough to see that not all investors need to behave the same way.
A year on from signing the PRI, the world’s biggest pension fund will seek discussion with non-Japanese asset owners regarding advances in environmental, social and governance practices.
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