UPDATE 1-Japan’s GPIF posts $ 16.5 billion second quarter return, boosted by domestic stocks
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TOKYO, Nov. 5 (Reuters) – The Japanese Government’s Pension Investment Fund (GPIF) posted a return on investment of 1.88 trillion yen ($ 16.54 billion) in the second quarter, fueled by gains in domestic stocks, he said on Friday.
The world’s largest pension fund, GPIF, managed 194.1 trillion yen in assets at the end of September, with an overall return on assets of 0.98% over the three-month period, he said in a statement.
For the second quarter, Japan’s Nikkei stock average rose 2.3%, driven by advances in vaccinations to control the coronavirus pandemic.
The fund’s Japanese equity portfolio returned 5.35%, while the foreign equity portfolio lost 0.77%.
GPIF investments are closely watched by global investors due to its size.
At the end of September, the fund held 26.79% of its portfolio in Japanese bonds, 24.17% in foreign bonds, 25.03% in national equities and 24.01% in foreign equities.
The pension fund has shifted its portfolio from unprofitable domestic bonds to higher yielding foreign assets, as domestic interest rates are ultra-low. ($ 1 = 113.6500 yen) (Reporting by Makiko Yamazaki; Editing by Jacqueline Wong and Clarence Fernandez)