Doesn't see imminent need to consider hedging investment against risk of stronger yen
- recent USDJPY moves have been quite rapid
- we wiill steadily shift fund allocation towards our 25% target for both domestic overseas stocks
- do not have concern over recent weak-yen trend that reflects diverging policy direction of Fed, BOJ
- our review of portfolio has resulted in better than expected investment performance so far
- do not have strong concern about outlook for JGB yields as BOJ's ultra-loose policy will keep rates low for some time
- how to respond to market moves when BOJ exits QQE is a big theme for us as it will likely cause big swings in bond yields
Head of Government Pension Investment Fund ( the world's largest ) voicing his thoughts and suggesting that yen strength isn't going to happen any time soon but still expressing caution
USDJPY up to 124.65
