Japan's GPIF posts $47 billion quarterly returns as stock markets rally

FILE PHOTO: The sign of Japan's Government Pension Investment Fund (GPIF) is seen in Tokyo, Japan, November 16, 2018. REUTERS/Toru Hanai

TOKYO (Reuters) - Japan’s Government Pension Investment Fund (GPIF) said on Friday it earned a second-quarter investment return of 4.9 trillion yen ($47.3 billion) as global stock markets rallied, following a record return of 12.49 trillion yen in the previous quarter.

The world’s largest pension fund managed 167.5 trillion yen worth of assets as at the end of September and its return on overall assets was 3.1% over the three-month period, it said in a statement.

During the three months, Japan's Nikkei stock average .N225 rose 4.8% while the Dow Jones Industrial Average .DJI added 8%.

GPIF’s Japanese stock portfolio achieved a 4.9% return and its foreign stock portfolio earned 6%.

“Both domestic and foreign stock markets rose as virus-related economic restrictions were partly eased,” the fund’s president, Masataka Miyazono, said in a statement.

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

As at September-end, the fund had 26.61% of its portfolio in Japanese bonds, 23.46% in foreign bonds, 24.06% in domestic equities and 25.88% in foreign equities.

In the three months through June, GPIF reported a record quarterly return of 12.49 trillion yen on the back of a rise in global stock markets after the COVID-19 pandemic had pushed down stock prices.

($1 = 103.5600 yen)

Reporting by Takashi Umekawa; Editing by Chang-Ran Kim and Christopher Cushing