The Government Pension Investment Fund posted a record gain in the three months ended in June as global and domestic stocks rallied, offsetting weakness from government bonds.
The pension fund, one of the world¡¯s largest, had an unprecedented ?24.1 trillion ($152 billion) quarterly gain, an 8.2% return, with assets totaling ?317.76 trillion, it said Friday in Tokyo. In Japan, stock investments returned 14.5% and bonds lost 1.1%. Shares abroad added 16.9%, while foreign bonds rose 3.1%.
Japanese bonds made up 25.59% of the funds assets in June, compared with 26.91% in March. Before 2020, the target for domestic bonds was 35%.
The performance of Japanese bonds lagged even as Prime Minister Sanae Takaichi¡¯s administration seeks to encourage investors including GPIF, itself, to invest more at home to support the local market. The fund¡¯s leader has said it will manage its assets solely in the long-term interest of its beneficiaries, a sign that it may not heed the government¡¯s call.
During the fiscal quarter, the MSCI All-Country World Index of global stocks rose 14% and the S&P 500 added 15% as the Topix gained 14%. Yields on 10-year Treasuries added 15 basis points, while benchmark Japanese bond yields increased about 32 basis points. The dollar rose about 2.4% against the yen.
GPIF¡¯s model portfolio aims to allocate a quarter of funds to each of four asset classes ¡ª domestic stocks and bonds as well as foreign equities and debt.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.