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GPIF logs first profit in two quarters

JIJI

The Government Pension Investment Fund posted a ¥2.224 trillion return on investment from April to June, logging its first profit in two quarters, officials of the mammoth entity reported.

The results reflected solid showings from the fund’s stock investments at home and abroad, the officials said Friday.

The fund’s investment yield came to 1.77 percent in the first quarter of fiscal 2014. The profit included around ¥1.069 trillion from domestic stocks, ¥440.8 billion from domestic bonds, ¥604.4 billion from foreign stocks and ¥76.4 billion from foreign bonds.

As of the end of June, GPIF was managing some ¥127.26 trillion in pension assets, with domestic bonds accounting for roughly 51.9 percent of its investment portfolio, domestic stocks 16.8 percent, foreign bonds 10.8 percent and foreign stocks 15.5 percent.

The domestic bond ratio, however, deviated from its target range of 60 percent, plus or minus 8 points.

GPIF is reviewing its portfolio and is expected to announce the results this autumn. According to informed sources, the huge fund is likely to reduce its holding of domestic bonds and increase its holdings of domestic stocks and overseas assets.