Japan's Government Pension Investment Fund on Tuesday reported a 3.56% gain for its fiscal third quarter ended Dec. 31, lifting the value of its investment portfolio to ¥139.8 trillion ($1.16 trillion).
With global equity markets rebounding from the prior quarter's sharp sell-off, the world's largest pension fund reported ¥4.7 trillion of investment gains for the period.
A 9.83% gain for Japan's TOPIX benchmark index left the fund's allocation to domestic equities accounting for more than 60% of the ¥4.7 trillion total. International equities contributed another third of the total.
As of Dec. 31, the fund had allocations of 37.76% to domestic bonds, 23.35% to domestic equities, 22.82% to international equities, 13.5% to international bonds and 2.57% to cash.
That compared to allocations for the prior quarter of 38.95% domestic bonds, 21.35% domestic equities, 21.64% international equities, 13.6% international bonds and 4.46% cash.
For the latest quarter, allocations to alternatives — included within the allocations to stocks and bonds — accounted for four basis points of the total portfolio, down from five basis points at the end of the previous quarter.
The latest gains still left the Tokyo-based fund with a negative return for the first three quarters of its fiscal year ending March 31. The GPIF lost ¥511 billion for the first nine months of the year, for a rate of return of -0.37%.