World’s Largest Pension Fund Nears $1.5 Trillion

Foreign equities drive Japan’s Government Pension Investment Fund’s 1.68% returns in its first fiscal quarter.

The value of Japan’s Government Pension Investment Fund (GPIF) rose to ¥158.6 trillion ($1.43 trillion) Friday after posting a 1.68% gain for its first fiscal quarter.

Norihiro Takahashi, president of the world’s largest pension fund said that despite trade turbulence with the US, global and domestic equities were sturdy enough to raise developed market stocks for the period ended June 30.

The fund reaped ¥2.6 trillion in returns, with a full ¥2 trillion coming from foreign equities. The rest of the gains came from domestic equities, foreign bonds, and domestic bonds.

At the end of the quarter, the pension fund’s largest allocation is in domestic bonds, at 27.1%. Domestic and foreign equities take up 25.6% and 25.3%, respectively. Foreign bonds take up 15.3% of the portfolio. The rest is in short-term assets.

The fund is still underweight in its 35% target for domestic bonds, while domestic and foreign equities, and foreign bonds are slightly overweight vis-a-vis their 25% and 15% targets.

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