Japan Pension Fund GPIF Logs 41-T.-Yen Returns in FY 2025

Tokyo, July 3 (Jiji Press)–Japan’s Government Pension Investment Fund said Friday that it gained an investment profit of 41,399.5 billion yen in fiscal 2025, which ended in March, marking the sixth consecutive year of surplus. The fiscal 2025 investment returns were the second largest on record, after the 45,415.3 billion yen in fiscal 2023, thanks to record-breaking stock price rises both at home and abroad as well as a weaker yen. By asset category, the public pension fund generated profits of 20,455.6 billion yen from investment in domestic stocks, 16,624 billion yen from foreign stocks and 8,040.6 billion yen from foreign bonds. Stock prices, particularly in the semiconductor and artificial intelligence sectors, rose sharply, while the depreciation of the Japanese currency boosted the yen-denominated value of foreign assets held by the GPIF. In contrast, the GPIF reported a loss of 3,720.7 billion yen from domestic bond investment as Japanese government bond yields rose following interest rate hikes by the Bank of Japan. JGB prices and yields move inversely. The GPIF manages its assets under its basic portfolio policy of allocating 25 pct each to domestic equities, foreign equities, domestic bonds and foreign bonds. “It is far more important to have favorable market conditions over the long term than to focus on short-term earnings trends,” GPIF President Kazuto Uchida told a press conference Friday. For fiscal 2025, the GPIF posted an investment yield of 16.47 pct. The total value of assets under its management stood at 293,643.7 billion yen at the end of the fiscal year. The GPIF’s cumulative returns since fiscal 2001, when it began financial market investments, came to 196,930.6 billion yen. END [Copyright The Jiji Press, Ltd.]