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26 Apr 2016
GPIF president embraces currency hedging
The Nikkei carries an article today, in which it reveals that Japan's Government Pension Investment Fund (GPIF) is set to embrace currency hedging, according to GPIF president Norihiro Takahashi.
As the Nikkei reports: "Japan's Government Pension Investment Fund, having long taken few safeguards against foreign exchange risk, is adopting currency hedging to contend with an appreciating yen, President Norihiro Takahashi told The Nikkei on Monday."
When asked, 'with foreign stock and bonds making up nearly 40% of its assets, how does the GPIF contend with a rising yen?', Takahashi responded that "we will try to smooth out returns by using currency hedges on some of that."
"We're preparing to be able to do that at any time. We don't intend to go completely without hedges. And we're looking at hedges in not only the dollar but also the euro", Takahashi added.
"We are not ruling out hedges in emerging-market currencies, but we will work on major currencies because of the size of those positions", Takahashi concluded.
As the Nikkei reports: "Japan's Government Pension Investment Fund, having long taken few safeguards against foreign exchange risk, is adopting currency hedging to contend with an appreciating yen, President Norihiro Takahashi told The Nikkei on Monday."
When asked, 'with foreign stock and bonds making up nearly 40% of its assets, how does the GPIF contend with a rising yen?', Takahashi responded that "we will try to smooth out returns by using currency hedges on some of that."
"We're preparing to be able to do that at any time. We don't intend to go completely without hedges. And we're looking at hedges in not only the dollar but also the euro", Takahashi added.
"We are not ruling out hedges in emerging-market currencies, but we will work on major currencies because of the size of those positions", Takahashi concluded.