Japan's Government Pension Investment Fund reported a record 25% gain for its March 31 fiscal year, lifting the value of its portfolio to ¥186.2 trillion ($1.69 trillion).
GPIF, in a presentation posted on the fund's website Friday, cited the flood of global monetary and fiscal stimulus aimed at combating the impacts of the coronavirus crisis as the factor driving its strong rebound from a 5.2% drop for the prior year, which ended with the pandemic crushing equity markets around the world.
For the final quarter of the latest fiscal year, GPIF reported a 5.65% gain — only its third best showing for a 12 month period that saw gains of 8.29%, 3.03% and 6.18% over the first three quarters.
The fund's annual report showed GPIF's portfolio allocations ending the year close to its targets of 25% apiece for domestic and foreign stocks and bonds, on the back of active rebalancing. The report showed GPIF's investment team shifting roughly ¥10 trillion from foreign stocks and ¥3 trillion from domestic stocks into foreign and domestic bonds during the year.
As of March 31, domestic bonds — including domestic cash instruments and foreign bonds hedged to yen — accounted for 25.92% of the portfolio, or ¥49.8 trillion, followed by foreign stocks at 24.89%; foreign bonds at 24.61%; and domestic stocks at 24.58%.
Portfolio gains for the year came to roughly ¥38 trillion, with stocks accounting for more than 93% of the total on the back of rallying markets globally as well as dividend-related income.