The Government Pension Investment Fund made a return of 5.86% in the year to 31 March, enjoying investment income of 7,936.3 billion yen that helped to bring its assets to a record 144,903.4bn yen, its just-published summary results show.
The Fund ended the previous year with assets of 134,747.5bn yen which added to investment income for the term just closed gives a total of 142,783.8bn yen. The 2,119.6bn yen difference between that the new total is not explained.
Returns on domestic and foreign equities, both over of 14%, overwhelmed the loses incurred on bond holdings which make up half the portfolio. The proportion of domestic bonds is now running at 35% — about what the Fund needs to ensure sufficient liquidity to pay benefits. Holdings of FILP (Fiscal Investment & Loan Program, or zaito) bonds have shrunk to almost nothing.
Performance relative to benchmarks is not shown in the summary results and details of any changes in the line-up of external managers will also have to wait until publication of the annual report later this year.
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