Wed, May 25, 2016
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. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  2. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  3. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  4. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th

  5. Opalesque Exclusive: South Africa’s equity-centric hedge funds survive rough April in the black[more]

    Komfie Manalo, Opalesque Asia: Hedge funds serviced by Peregrine Holdings’ unit Peregrine Capital performed fairly well in April. The consecutive gains in March and April meant another step closer towards negating the cumulative losses sustai