GPIF posts 5.1tril yen quar­terly gain

New Straits Times - - Business -

TOKYO: The world’s big­gest pen­sion fund posted its fourth­straight quar­terly gain, as global stocks rose and a de­cline in the yen against both the US dol­lar and the euro helped boost the value of its over­seas in­vest­ments.

The Gov­ern­ment Pen­sion In­vest­ment Fund (GPIF) re­turned 3.5 per cent, or 5.1 tril­lion yen (RM196.99 bil­lion), in the three months ended June 30, in­creas­ing as­sets to a record 149.2 tril­lion yen, it said.

Do­mes­tic eq­ui­ties added 2.3 tril­lion yen as the bench­mark Topix in­dex rose in the pe­riod, while the value of for­eign stocks in­creased by 1.9 tril­lion yen.

The re­tire­ment fund’s re­cent string of quar­terly gains fol­lows a se­ries of losses af­ter it over­hauled its strat­egy in 2014 to buy more shares and cut debt.

“With stronger stocks, we’re not see­ing a re­peat of tril­lions of yen of pa­per losses that we saw in the past,” said Ayako Sera, a mar­ket strate­gist with Su­mit­omo Mit­sui Trust Bank Ltd.

“Per­for­mance is im­prov­ing, but we still have to main­tain a calm view.”

The fund’s Ja­pa­nese share hold­ings re­turned 6.6 per cent over the three months, match­ing the Topix’s per­for­mance. Over­seas stocks added 5.5 per cent, helped by a 7.6 per cent drop in the yen against the euro, the big­gest de­cline since 2013, as well as weak­ness ver­sus the green­back, both of which in­crease the value of for­eign hold­ings when repa­tri­ated.

The MSCI All-Coun­try World In­dex climbed 3.6 per cent last quar­ter. Bloomberg

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