Japanese pension fund to shoulder costs of Bank of Japan’s negative rate
Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, has decided to shoulder the costs charged on its deposits under the central bank’s negative rate policy, sources familiar with the matter said on Monday.
GPIF entrusts its deposits to a trust bank arm of Mitsubishi Financial Group (8306.T), which had been wearing the cost of a 0.1 percent charge the BOJ imposes on a portion of excess reserves parked with the central bank.
The Nikkei newspaper reported earlier that with GPIF’s deposits piling up because of meager returns on its bond investments, the trust bank arm had requested the pension fund to pay the negative rate charge.
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