Japan’s GPIF posts $47 billion return in Q3 on solid overseas stocks

TOKYO (Reuters) -Japan’s Government Pension Investment Fund (GPIF) said on Friday it posted a third-quarter investment return of 5.437 trillion yen ($47.29 billion) on gains from overseas stocks.

GPIF, the world’s largest pension fund, managed 199.3 trillion yen of assets as of the end of December and its return on overall assets was 2.81% over the three month period, it said in a statement.

For the third quarter, the Dow Jones industrial average rose 7%, while Japan’s Nikkei stock average dipped 2%.

The fund’s foreign stock portfolio achieved a return of 10.54%, while the Japanese stock portfolio had a loss of 1.62%.

GPIF’s investments are closely watched by global investors because of its sheer size.

By the end of September, the fund had 24.95% of its portfolio in Japanese bonds, 24.46% in foreign bonds, 24.92% in domestic equities and 25.68% in foreign equities.

The pension fund has been shifting its portfolio away from unprofitable domestic bonds toward higher-yielding foreign assets, as domestic interest rates are ultra-low.

($1 = 114.9600 yen)