Japan's trillion-dollar public pension fund said on Thursday it could consider factors like corporate governance, in addition to investor returns, when deciding on stock investments. The Government Pension Investment Fund, the world's biggest pension fund, decided in October to double the allocation for share holdings in its 137 trillion yen ($1.1 trillion) portfolio, while slashing investments in low-yielding government bonds, in line with a push from Prime Minister Shinzo Abe for greater returns and risk-taking.
The move by the mammoth fund, which is being followed by other big Japanese institutions, has helped push Tokyo shares to 15-year highs this year.
In a mid-term plan announced on Thursday, GPIF said it would consider taking account of "environmental, social and governance" (ESG) factors in equity-investment decisions, while pursuing profits.
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