The Government Pension Investment Fund, which manages public pension reserves, said Friday that its investment performance in the April-June period this year was a surplus of 12.4868 trillion yen. The rate of return was 8.30%. On a quarterly basis, this is the largest quarterly surplus and rate of return since 2008, when the GPIF started to manage all pension reserves.
According to the GPIF, the April-June period saw an improvement in economic indicators, particularly in the U.S., and a significant rise in domestic and international stock prices as countries gradually resumed economic activity amid the spread of the new coronavirus. As a result, the January-March period saw a turnaround from the largest quarterly loss of 17.7072 trillion yen.
In terms of assets under management, foreign stocks were in the black by 7.5144 trillion yen, domestic stocks were in the black by 3.9689 trillion yen and foreign bonds were in the black by 1.1364 trillion yen. Domestic bonds were in the red at 137.1 billion yen. The guideline for the proportion of domestic and foreign stocks to total assets under management was doubled to a total of 50% in 2014, so earnings tend to be sensitive to stock price trends.
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