The Federation of National Public Service Personnel Mutual Aid Associations, a Tokyo-based public pension fund, reported the value of its investment portfolio stood at ¥7.8 trillion ($65.2 billion) as of its March 31 fiscal year close, up 2.3% from the year before.
For the year, the fund — known by its Japanese acronym, KKR — enjoyed a nominal investment return of 7.45%, and a real return of 4.75%, according to a report on the fund's website.
The investment portfolio's more modest gain for the year reflected the fact that the fund paid out ¥363.5 billion more than it received in inflows for the period.
As of March 31, the fund reported that Japanese government bonds and bond-like instruments accounted for 66.5% of its portfolio, with allocations of 12.5% for domestic stocks; 12.2% for international stocks; 2.6% for overseas bonds; 2.3% for cash; 2% for real estate; and 1.9% for loans.
That compared to year-earlier allocation, as of March 31, 2014, of 75.6% for domestic bonds; 8.6% for international stocks; 8% for domestic stocks; 2.3% for loans, 2.1% each for real estate and cash; and 1.3% for overseas bonds.
The latest asset allocation figures show KKR making slower progress in achieving the common targets for a shift to risk assets from domestic bonds that the fund, together with the ¥137.5 trillion Government Pension Investment Fund, Tokyo, and two other big public funds, adopted over the past year.
Those targets, which KKR adopted in February, calls for allocations of 35% to domestic bonds, 25% each to domestic stocks and international stocks, and 15% to overseas bonds.
A KKR spokesman Wednesday said the pension fund will continue to work to those goals over the long term.
