We are increasingly confident that around €600bn of assets will transition on 1 January 2026, bringing about significant flows in longer-dated bonds and swaps. Markets are closely watching, with 10s30s steepening on headlines. Credit should benefit from the transition, with most flow funds only coming in in after 1 Januarya
Portfolio concentration refers to the extent to which a portfolio is invested in a limited number of assets, sectors, markets, or asset classes. While higher concentration typically increases portfolio risk, it does not necessarily lead to higher returns; in fact, returns are often lower.
According to Nikkei' s exclusive report, the GPIF is expected to maintain its current asset weightings in its basic portfolio from FY2025, with each of the four asset classes retaining their 25% allocation. The article did not specify any changes to the allowable deviation ranges from these target weights.
