Japanese Pension Giant Rebounds in Fiscal Q3

The Government Pension Investment Fund’s investments returned 2.62% during the quarter that ended in December 2023, raising its asset value to more than $1.5 trillion.




Japan’s Government Pension Investment Fund rebounded in the third quarter of fiscal 2023, returning 2.62%, after reporting a slight loss the previous quarter, to raise its total asset value to 224.7 trillion yen ($1.51 trillion). For the first three quarters of the fiscal year, which runs from April 1, 2023, to March 31, 2024, the pension giant’s investment portfolio has returned 12%.

The investment portfolio returned a total of 5.73 trillion yen for the quarter and 10.45 trillion yen during the first three quarters of the fiscal year.

Foreign equities were the GPIF’s top-performing asset class during Q3, returning 4.91%, followed by foreign bonds, which gained 2.55%. But both fell short of their respective benchmarks, which returned 5.17% and 2.56%, respectively. Domestic equities earned 2.05%, while domestic bonds returned 0.95%, both of which just beat their benchmarks, which returned 2.04% and 0.89%, respectively.

Through the first three quarters, the pension fund’s foreign equities returned 20.97%, or 10.45 trillion yen, compared with its benchmark’s return of 21.12% during the same time period. That was followed by domestic equities, which earned 19.62%, or 9.54 trillion yen, just shy of its benchmark’s 19.64% return. Meanwhile foreign bonds returned 9.95% during the same period, or 4.86 trillion yen, ahead of the benchmark’s 9.49% return, while domestic bonds lost 1.47%, or 816.1 billion yen, beating the benchmark’s 1.70% loss.

For more stories like this, sign up for the CIO Alert newsletter.

From the GPIF’s inception in 2006 through the third quarter of 2023, the pension fund has an annualized return of 4.34%, or 118.99 trillion yen. The pension fund’s asset allocation is 25.77% domestic bonds, 25.14% foreign equities, 24.66% domestic equities and 24.44% foreign bonds. The sum of the allocations exceeds 100% due to rounding.

Related Stories:

Japan’s GPIF Ends Losing Streak With 5.4% Return in Fiscal Q4

Japan’s GPIF Suffers 4th Straight Quarterly Loss for 1st Time in 20 Years

Japan’s GPIF Loses $37 Billion in First Half of Fiscal 2022

 

 

Tags: , , , , ,

«