Japan’s GPIF Achieves Q1 Return of US $ 45.3 Billion Thanks to Gains in Foreign Equities
TOKYO: Japan’s Government Pension Investment Fund (GPIF) said on Friday it recorded a first quarter return on investment of 4.98 trillion yen ($ 45.3 billion) from gains in foreign stocks, after an annual return record for the last fiscal year ended March 31. .
GPIF, the world’s largest pension fund, managed 191.6 trillion yen in assets at the end of June and its return on total assets was 2.68% over the three-month period, t he said in a statement.
GPIF relies heavily on a passive index tracking strategy, so its returns generally reflect market movements. While the Japanese Nikkei stock average fell 1.3% in the quarter, the Dow Jones Industrial Average rose 4.6%.
Its Japanese equity portfolio lost 0.25% and the foreign equity portfolio returned 8.62%.
GPIF investments are closely watched by global investors due to the size of the fund. The pension fund shifted its portfolio from unprofitable domestic bonds to higher yielding foreign assets, given ultra-low interest rates in the country.
At the end of June, the fund held 25.39% of its portfolio in Japanese bonds, 24.72% in foreign bonds, 24.49% in national equities and 25.41% in foreign equities.
In the past fiscal year, GPIF achieved a record return on investment of 37.8 trillion yen, as market sentiment increased alongside progress in vaccination programs around the world aimed at controlling the pandemic. .
(US $ 1 = 109,8,300 yen)
(Reporting by Takashi Umekawa; Editing by Muralikumar Anantharaman)