GPIF posts ¥5.1 tril. investment profit

Jiji Press TOKYO (Jiji Press) — The Government Pension Investment Fund posted ¥5,115.3 billion in investment returns in April-June, logging a profit for the fourth consecutive quarter, the manager of public pension funds said Friday.

The rosy performance was backed by gains from stock investments amid rising equity prices both in Japan and abroad. The benchmark Nikkei stock average closed above 20,000 for the first time in about 18 months on June 2.

Cumulative returns since the GPIF’s major portfolio review at the end of October 2014 totaled ¥17,189.6 billion. Since the fund started discretionary asset management in fiscal 2001, which ended in March 2002, cumulative returns reached ¥58,475.6 billion.

In April-June, the GPIF posted a profit of ¥2,316.1 billion on Japanese stocks and ¥1,912.4 billion on foreign stocks. Stock prices rose partly thanks to political stability in Europe after the May 7 French presidential run-off.

The GPIF earned a profit of ¥880.9 billion from foreign bonds, while posting a loss of ¥1.4 billion from domestic bonds due chiefly to low interest rates.

Interest and dividend income derived from long-term holdings of stocks and bonds came to ¥901.6 billion.

The overall investment yield for the first quarter of fiscal 2017 stood at 3.54 percent.

As of the end of June, assets under the GPIF’s management totaled ¥149,198.7 billion, hitting the highest level since it started the discretionary asset management.Speech

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