A Japanese sovereign wealth fund should invest in projects that promote global development as well as provide returns, according to former financial services minister Yuji Yamamoto.
"The primary purpose of an investment is to boost returns, but nations also need to be aware of the role" they play in the global economy, Yamamoto, who heads a Liberal Democratic Party panel that advocates the creation of a fund, said in an interview last week. "It's meaningful to invest in natural resources and infrastructure projects in emerging economies."
The former minister lauded Abu Dhabi Investment Authority's cash injection into Citigroup Inc. as an example of how funds can play a larger role in stabilizing the global economy. Yamamoto is advocating the creation of a similar fund to manage Japan's ¥150 trillion in pension reserves and about ¥4 trillion in foreign reserves.