TOKYO Nov 25 Japan's Government Pension
Investment Fund, the world's largest pension fund, posted a gain
of 2.37 trillion yen ($20.9 billion) in the fiscal second
quarter thanks to a rebound in global stock markets.
The result follows GPIF's historic policy shift in 2014 of
increasing its investments in riskier assets such as stocks for
During the quarter, world stocks rebounded from lows hit
after Britain voted in June to leave the European Union, which
triggered a surge in the yen against the dollar.
"Global investors became more eager to take risks in their
investments as oil prices turned stable, which sent the S&P500
index to a historic high during the quarter," GPIF President
Norihiro Takahashi said in a statement.
Yields on 10-year Japanese government bonds rose after the
Bank of Japan overhauled its policy and set targets for
government bond yields in September, he said.
Stocks rose on expectation for the positive outcome from the
government's economic stimulus measures, he added.
In the three months through September, Japan's benchmark
Nikkei 225 gained 5.6 percent.
GPIF, which managed 132.8 trillion yen worth assets as of
September, had a return of 1.84 percent in the quarter,
generating paper gains of 2.37 trillion yen.
Of GPIF's four asset classes, the Japanese stock portfolio
had a return of 7.14 percent, while the Japanese bond portfolio
had a negative return of 1.34 percent.
The GPIF's late 2014 investment shift saw it reduce
its reliance on low-yielding domestic bonds and increase
weightings of stocks and other riskier assets.
Of all the pension reserve which also included 8.4 trillion
yen pooled at Japan's health ministry, 21.59 percent was
allocated to Japanese stocks, underweighting the target set in
It allocated 36.15 percent of assets to the domestic bonds,
overweighting the target.
GPIF said it had owned shares in 2,120 stocks through March
31, which included Toyota Motor Corp, Mitsubishi UFJ
Financial Group, Nippon Telegraph & Telephone Corp
, Honda Motor Co and KDDI Corp.
GPIF also had owned Japanese bonds issued by 488 entities,
including the Japanese government, Japan Expressway Holding and
Debt Repayment Agency and Japan Finance Organization for
GPIF directly invests only in a portion of bonds, while it
asks other financial institutions to manage most of the bonds
and all the stocks.
($1 = 113.4700 yen)
(Reporting by Junko Fujita; Editing by Kim Coghill)