Government officials are calling for increased investment in Japanese assets as GPIF reduces its holdings in Japanese government bonds.

In the three months ending in June, the Government Pension Investment Fund (GPIF) of Japan reduced its allocation to Japanese bonds, after which Japan's Finance Minister urged an increase in investment in local assets. According to a quarterly report released on Friday in Tokyo, Japanese bonds accounted for 25.59% of GPIF's assets. This ratio is down from 26.91% in March, but remains within the range of 23.64% to 27.64% observed over the past six years. Japanese bonds were the only asset that GPIF reduced during this period. This might put one of the world's largest pension funds at odds with the thinking of Prime Minister Kishi Nobuo's administration; the fund's decisions often set trends for other investors. In July, Finance Minister Kato Suneo called for funds like GPIF to increase their investments in Japanese assets, bringing attention to the fund's asset allocation. Later that month, Prime Minister Kishi Nobuo also expressed a similar sentiment, emphasizing the importance of encouraging households and GPIF to increase their investments in Japanese financial assets during a parliamentary session.