Japan mega-fund GPIF posts $72 billion quarterly return on global equities rally

Japan mega-fund GPIF posts $72 billion quarterly return on global equities rally
FILE PHOTO: The sign of Japan’s Government Pension Investment Fund (GPIF) is seen at its reception in Tokyo, Japan, November 16, 2018. REUTERS/Toru Hanai

TOKYO :The world’s largest pension fund, Japan’s Government Investment Pension Fund (GPIF), said on Friday it made an investment gain of 10.3 trillion yen ($72.02 billion) in January-March, ending a four-quarter losing streak.

GPIF gained 5.41 per cent for the quarter, raising its total assets to above 200 trillion yen, it said in its 2022 annual report, which follows the Japanese financial year running from April to March.

Robust gains in domestic and international equity markets from January to March pushed the fund’s annual return into the black to hit 2.95 trillion yen ($20.63 billion), despite losses in the first three quarters of 2022.

The fund is closely watched by global financial markets because of its enormous size.

GPIF’s foreign stock portfolio posted a quarterly gain of 8.19 per cent, while its Japanese stock portfolio gained 7.03 per cent.

Over the same period, the S&P 500 gained 7.03 per cent while Japan’s Nikkei stock average gained 7.46 per cent.

Returns from the GPIF’s Japanese bond portfolio grew 2.12 per cent, while its foreign bond portfolio gained 4.33 per cent.

As of end-March, Japanese bonds accounted for 26.79 per cent of its portfolio and foreign bonds accounted for 24.39 per cent. Foreign equities accounted for 24.32 per cent and domestic equities 24.49 per cent.

Also on Friday, the Japan Science and Technology Agency said its University Endowment Fund posted a 2.2 per cent investment loss, trimming its assets to 9.96 trillion yen ($69.65 billion).

The government-backed endowment was established in March 2022 to promote science and technology research in Japan as part of a growth strategy intended to distribute wealth to the wider public.

($1 = 143.0100 yen)

Source: Reuters