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Japan’s Pension Fund Posts 2.81% Quarterly Return

GPIF managed 199.3 trillion yen of assets as of the end of December and its return on overall assets was 2.81% over the three-month period, it said in a statement.


Japan's Government Pension Investment Fund achieved a return of 10.54%, while the Japanese stock portfolio had a loss of 1.62%. Photo: Reuters.

 

Japan’s Government Pension Investment Fund (GPIF) said on Friday it posted a third-quarter investment return of 5.437 trillion yen ($47.29 billion) on gains from overseas stocks.

GPIF, the world’s largest pension fund, managed 199.3 trillion yen of assets as of the end of December and its return on overall assets was 2.81% over the three month period, it said in a statement.

For the third quarter, the Dow Jones industrial average rose 7%, while Japan’s Nikkei stock average dipped 2%.

The fund’s foreign stock portfolio achieved a return of 10.54%, while the Japanese stock portfolio had a loss of 1.62%. GPIF’s investments are closely watched by global investors because of its sheer size.

By the end of September, the fund had 24.95% of its portfolio in Japanese bonds, 24.46% in foreign bonds, 24.92% in domestic equities and 25.68% in foreign equities.

The pension fund has been shifting its portfolio away from unprofitable domestic bonds toward higher-yielding foreign assets, as domestic interest rates are ultra-low.

 

  • Reuters, with additional editing by George Russell

 

READ MORE:

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Canada Pension Fund Invests $160m in Japan Real Estate

Global Pension Index calls for urgent reform

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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