Visitors to Japan’s public pension fund can’t miss signs of the low-cost, low-return culture that Prime Minister Shinzo Abe seems determined to change with a review of its operations that kicked off on Monday.
There is no receptionist at the dimly lit, 40-year-old Tokyo building where the headquarters of the Government Pension Investment Fund, the world’s largest pension, occupies the second floor.
The waiting area consists of two mismatched couches. Behind a single closed door, over $1 trillion – equivalent to the annual economic output of South Korea – is run almost on autopilot and invested largely in government bonds issued across the street by Japan’s Finance Ministry.
Read the rest of the story: Abe reforms take aim at Japan’s $1 trillion pension fund.