Recorded Profits of Over 10 Trillion Yen by Japan's GPIF in the Quarter April-June
The Government Pension Investment Fund (GPIF) of Japan has announced impressive investment returns for the April-June 2023 quarter, with profits of 10,205.4 billion yen. This marks a new record high for the fund's assets under management, which stood at 260,024.3 billion yen as of the end of June 2023.
The strong performance can be attributed to higher returns from both domestic and foreign stock investments. The GPIF's profits from domestic stock investments amounted to 4,521.5 billion yen, while foreign stock investments yielded 4,777.2 billion yen. Foreign bond investments also contributed positively, with profits of 1,006.4 billion yen.
However, the fund experienced a loss on its holdings of domestic bonds, logging a loss of 99.7 billion yen in the same quarter.
The slump in stock prices, which was temporarily caused by concerns over U.S. President Donald Trump's tariff policy, was later followed by a rebound as fears eased. The rebound in global stock markets benefited both domestic and foreign equities, while bond investments—especially domestic bonds—showed weaker or negative returns during the period.
Despite the occasional setbacks, the GPIF's cumulative profits since fiscal 2001, when it started market investment, have reached a significant milestone of 165,736.5 billion yen.
[1] Source: GPIF Quarterly Report (April-June 2023) [5] Source: GPIF Quarterly Report (April-June 2023)
- The impressive investment returns of the Government Pension Investment Fund (GPIF) can be partially attributed to profit-generating investments in foreign stock markets, as well as foreign bond markets.
- The GPIF's business strategy involves not only domestic investments but also investing in foreign equities and bonds, with the aim of maximizing returns and minimizing potential losses.
