Huge endowment fund to boost Japanese universities flagging on international stage

Japan’s new ¥10 trillion (£65 billion) national endowment fund to boost research in universities will go live at the start of the new financial year, Japan’s Science and Technology Agency (JST) has confirmed. But universities will have to meet strict criteria to apply for funding as the government tries to push the sector towards long awaited reform.

First announced last January, details remain under wraps but it is expected that ¥4.5 trillion (£39 billion) of seed money will come from government, backed up with other investments from universities and the financial sector. This money will be invested in the stock and bond markets to eventually reach the target ¥10 trillion. JST, which will manage the fund, is aiming for a 3% annual return once the fund gets going.