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Japan’s Government Pension Investment Fund (GPIF), the World’s Largest State Pension, Likely to Remove Ban on Foreign Stock Lending

BySamantha Johnson

Mar 14, 2024
Japan’s Government Pension Investment Fund (GPIF), the World’s Largest State Pension, Likely to Remove Ban on Foreign Stock Lending

Japan’s Government Pension Investment Fund (GPIF) is set to announce the resumption of lending foreign stocks, according to sources familiar with the matter. This decision comes four years after the fund unexpectedly stopped the practice. The world’s largest state pension fund paused stock lending due to concerns about not being able to exercise voting rights appropriately if the stocks were held by others. However, after an internal review, the GPIF has determined that the practice is in line with its stewardship mandate.

Reports from the Nikkei newspaper suggest that the GPIF will resume lending foreign stocks. A spokesperson for the fund stated that an official announcement will be made at the appropriate time. With the resumption of stock lending, global investors will be closely monitoring the impact of the fund allowing more short selling of equities. In the three years leading up to March 2020, the GPIF earned approximately ¥35.6 billion ($241 million) from stock lending.

The decision to resume lending was made at a management committee meeting earlier this month, according to sources. This move could have significant implications for the market and for the fund’s investment strategies moving forward.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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