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Here Are The Holdings Of The Japanese Public Pension Fund
The story of the past hour: and the catalyst for the nearly 100 pip move in the USDJPY and the 10 move in ES was the "unsourced" Reuters article that is merely a regurgitation of a Bloomberg story from February 2013: "Japan Pension Fund Has Too Many Bonds on Abe Plan", which said that, quoting verbatim, "Japan’s public pension fund, the world’s biggest manager of retirement savings, is considering the first change to its asset balance as a new government’s policies could erode the value of $747 billion in local bonds." Or what Reuters just reported in an "exclusive." In other words, not only is the Reuters story without validation, it is four months old! And while the idiotic move resulting from this planted puff piece will be promptly faded, after all it simply says that the Government Pension Investment Fund (GPIF) will keep the current allocation of investments and not add to stocks, it brings up an interesting question: just what is the asset distribution of the GPIF?
Presenting the key assets JPY108 trillion ($1.16 trillion) GPIF pension fund as of September 2012:
- JPY 68.3 trillion in government bonds: 64%
- JPY 12.6 trillion in foreign stocks: 12%
- JPY 12 trillion in Japanese stocks: 11%
- JPY 9.6 trillion in foreign bonds: 9%
In other words, the fact that the GPIF's overall domestic equity allocation will not decline from 11%, or a little over $100 billion, is the main catalyst for today's move.
Putting $100 billion in context: this is how much liquidity the BOJ injects in the stock market in under two months.
And this is why having algos and Mrs Watanabe's FX stops deciding the level of the global market is not a good idea.
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Tyler you must have accidentally omitted their gold holdings.
The good news is the price of cat food seems to be holding steady......for now.
It looks to me like the pension funds are a dumping ground for all the government garbage that is used to fulfil thier agenda.
Every one is asking what is next for Nikkei. Let me guess. I think it will jump down, up, down, up with bigger and bigger amplitude.
why make a trillion, when you can make...(pause)...billions! ( Austin Powers Remix)
That key assets for Japanese public pension fund should be adumbrated with:
JPY 8.2 trillion in Spiderman towels from Spanish banks
JPY 5.8 trillion in olive oil futures from the Bank of Greece
JPY 3.2 trillion in MBS on Spanish real estate developments in Gibraltar
JPY 2.2 trillion in warrants for African solar park
JPY 1.2 trillion in raw fish futures from the State of California
JPY .8 trillion in corporate hospitality to FOMC
etc. etc.
the bernank taught them how to rape pension fund for benefit of insider very well
The rumbilngs we hear is the beginning flight to safety.
Gold, Bitchez!
"... is the beginning flight to safety."
Yes, but who is going to buy all those bonds that will be continually losing value?
It's the beginning of a bond selling panic!
"... is the beginning flight to safety."
Yes, but who is going to buy all those bonds that will be continually losing value?
It's the beginning of a bond selling panic!
"... is the beginning flight to safety."
Yes, but who is going to buy all those bonds that will be continually losing value?
It's the beginning of a bond selling panic!
"... is the beginning flight to safety."
Yes, but who is going to buy all those bonds that will be continually losing value?
It's the beginning of a bond selling panic!
The euro trade has been kind of boring lately, I'm sort of digging the 100 pip daily moves on the yen though.
I think the CBs are not comfortable letting the USD stray above 84. I am pretty sure that we are at the upper limit of what the acceptable trading range for the USD is and the lower limit for the Euro. FOREX is completely rigged by colluding CBs.
It's a balancing act, because if they make/allow the dollar to fall gold and silver will rise in price.
Like the enthusiasm I felt when Poland joined the coalition in the war on Iraq. That's really going to help.
Those cats are toast! They so much as put a scratch on one of these hotties....and the entire world is going to be against them.
http://www.youtube.com/watch?v=5huWVN54KYQ
They'd look a lot better without their uniforms in my bed.
Given market trends since September, here is a guess of the current allocation. If the guestimate is close to the truth, the Pension Fund will need to sell foreign stocks and bonds!!!
Probably not too far off.
What I would like to see is the current state of the GPIF's lending fascilities, which were specifically set up to avoid having to sell JGBs in order to funds pension pay-outs.
http://nipponmarketblog.wordpress.com/2013/05/13/gpif-tremors-in-the-jgb...
japanese culture
is wack
Lolitop - Charting The Descent Of The Nikkei Index
http://chartistfriendfrompittsburgh.blogspot.com/2013/05/lolitop-charting-descent-of-nikkei-index_30.html
The Japanese are really good at taking orders.
and of course the very first thing you want to do as a pension fund manager, before you make any changes to your allocation percentages, is go blabbing to the press so every hedge fund maggot and his brother can get a nice bite out of your ass.
I'll stick with the US Public Pension Funds, - the percentages and risk metrics are much simpler for my simpleton intellect...
I think he:s doing the opposite of whats suggested ie I suspect he:s reduced treasury holdings and maybe is the buyer of yen seller of USD (ie he primed the market a bit so he can unload)... He did the same when repatriating his EU position. They might still make adjustments in June but as guy said above why would he let the market front run him. Also given recent rise in JGB yields seems like good option to sell tres sell USD buy Yen and then buy the elevated JGB:s (ie big USD currency gain prob also relative good levels on tres (prob had them for years) and now switch into JGB at 2 year highs. ie he will break USD/Yen back below 100 (which I think BOJ wants to help stabalise things).. ie its not like he the Govt would let them control 1 trill in domestic pension money without a bit of coersion..
Key to know: What is the growth trend of the GPIF assets under management? After all, Japan's demographics are terribly skewed to old age. Are the assets declining, about to rollover or still growing?