UPDATE 1-Japan’s GPIF Achieves $ 45.3 Billion First Quarter Return Due to Gains on Foreign Equities

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TOKYO, Aug.6 (Reuters) – Japan’s Government Pension Investment Fund (GPIF) on Friday said it posted a return on investment of 4.98 trillion yen ($ 45.3 billion) in the first quarter thanks to gains in equities foreign countries, after a record annual return in the most recent fiscal year ended March 31.

GPIF, the world’s largest pension fund, managed 191.6 trillion yen in assets at the end of June and its return on total assets was 2.68% over the three-month period, t he said in a statement.

GPIF relies heavily on a passive index tracking strategy, so its returns generally reflect market movements. While the Japanese Nikkei stock average fell 1.3% in the quarter, the Dow Jones Industrial Average rose 4.6%.

Its Japanese equity portfolio lost 0.25% and the foreign equity portfolio returned 8.62%.

GPIF investments are closely watched by global investors due to the size of the fund. The pension fund shifted its portfolio from unprofitable domestic bonds to higher yielding foreign assets, given ultra-low interest rates in the country.

At the end of June, the fund held 25.39% of its portfolio in Japanese bonds, 24.72% in foreign bonds, 24.49% in domestic stocks and 25.41% in foreign stocks.

In the last fiscal year, GPIF achieved a record return on investment of 37.8 trillion yen, as market sentiment increased alongside progress in vaccination programs around the world aimed at controlling the pandemic. . ($ 1 = 109.8300 yen) (Reporting by Takashi Umekawa; Editing by Muralikumar Anantharaman)

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