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Asia, News

Japan’s GPIF earns $118 bln in Q1 returns as stock markets rally

* April-June overall return was 8.3%

* Japanese stock portfolio achieved 10.95% return

* Foreign stock portfolio earned 19.99% (Adds details of results)

TOKYO, Aug 7 (Reuters) – Japan’s Government Pension Investment Fund (GPIF) said on Friday it earned a first-quarter investment return of 12.49 trillion yen ($118.4 billion) as global stock markets rallied, following its record quarterly investment loss in the previous quarter.

GPIF, the world’s largest pension fund, managed 162.1 trillion yen of assets as of end-June and its return on overall assets was 8.3% over the three month period, it said in a statement.

Japan’s Nikkei stock average rose 23.4% during the quarter. The Dow Jones Industrial Average was up 23.3%.

Its Japanese stock portfolio achieved a 10.95% return and the foreign stock portfolio earned 19.99%.

GPIF changed its portfolio in April, evenly splitting its allocation at 25% each for domestic and foreign stocks and domestic and foreign bonds.

As of end-June, the fund had 26.33% of its portfolio in Japanese bonds, 21.81% in foreign bonds, 24.37% in domestic equities and 27.49% in foreign equities.

In the three months through March, GPIF reported a record quarterly loss of 17.71 trillion yen after global stock markets plunged during the COVID-19 pandemic. ($1 = 105.4900 yen) (Reporting by Takashi Umekawa; Editing by Muralikumar Anantharaman)

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