GPIF Reports Investment Gains
TOKYO (Reuters) – Japan’s Government Pension Investment Fund (GPIF) announced on Friday an investment gain of 10.7 trillion yen ($70.6 billion) for the October-December quarter, marking a recovery from a loss of 9.13 trillion yen in the previous quarter.
The GPIF is one of the world’s largest pension funds, boasting total assets of 258.7 trillion yen at the end of December.
The fund, which significantly influences global financial markets due to its scale, exhibited an investment return of 4.31%, contrasting with the previous quarter’s negative 3.57%, as global stock indexes advanced.
GPIF attributed these gains partly to strong corporate earnings, optimism surrounding economic policies under the Trump administration, and indicators of a soft landing in the United States.
The fund allocates approximately a quarter of its assets to both domestic and overseas stocks and bonds.
In January, Japan’s finance ministry announced plans to allow the fund direct participation in Japanese government bond auctions to facilitate easier portfolio rebalancing.
For the third quarter, GPIF’s Japanese bond portfolio encountered a loss of 1.33%, while its foreign bond portfolio yielded a gain of 4.12%.
The foreign stock portfolio increased by 8.96%, and the Japanese stock portfolio rose by 5.55%.
During the October-December period, the Nikkei stock average rose by 3.2%, and the S&P 500 gained 3%.
As of the end of December, Japanese bonds constituted 25.5% of GPIF’s portfolio, while foreign bonds made up 24.6%. Foreign equities accounted for 24.9%, and domestic equities comprised 25%.
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