Sat, Jan 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

$1.25 tln GPIF reports 10.23% return

Thursday, November 07, 2013

The annual report from the Government Pension Investment Fund, Japan – the world's largest pension fund - showed returns to March 31st 2013 for fiscal year 2012 were 10.23%. The Review of Operations opened with a message from the President, Takahiro Mitani, who commented on market conditions: "Over the course of fiscal year 2012, the performance was hit by the revived anxiety on European debt crisis, before buoyed by the appreciation of foreign currencies against Japanese yen and the rising equity prices home and abroad."

There has been criticism about the amount of debt the pension fund holds. Reporting in Bloomberg, Takatoshi Ito, dean of the University of Tokyo's graduate school of public policy, said: ""The majority of the panel thinks the GPIF is exposed to too much interest-rate risk", pointing specifically at the domestic bond portfolio. "If they're really aware of interest-rate risk, why are 60 percent of the assets in domestic bonds?" he asked.

Some members wanted the 121 tln yen ($1.25tln) GPIF to add new assets such as real-estate trusts, infrastructure and private-equity investments and commodities. The GPIF is hiring expert staff to diversify its asset base and adopt more sophisticated risk management measures.

The new wave of monetary stimulus in Japan, under the prime minister Shinzo Abe has put pressure on the GPIF's investment performance, which looks underwhelming in comparison. In the Bloomberg interview, Ito said: "The central bank's inflation goal "is plausible" and the government pension fund "should be using this as their main scenario. GPIF should be thinking of risk and returns on the basis of future economic forecasts."

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised