Japan’s Nippon Order, the country’s largest pension fund, has sparked concerns about government control over foreign investments. The Nippon Order has been investing in assets globally, including US stocks and real estate.
The fund’s investment strategy is guided by a set of rules known as the “Nippon Order Investment Guidelines,” which state that it should prioritize domestic investments and limit its exposure to foreign securities. However, critics argue that this approach may not be sufficient to address the challenges posed by global market fluctuations.
Some experts say that Japan’s government could play a more active role in shaping the Nippon Order’s investment decisions, particularly when it comes to foreign investments. They suggest that the government could provide guidance on areas of focus and risk management, helping to ensure that the fund is aligned with Japan’s economic goals.
The move has raised questions about the limits of government intervention in private sector decision-making. It also highlights the growing importance of state-led investment strategies in navigating global markets.
Source: https://www.law360.com/real-estate-authority/commercial/articles/2296786/nippon-order-tests-gov-t-control-over-foreign-investments