Fri, Mar 6, 2015
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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He

  5. Large hedge funds grow assets almost three times faster than sub $5bn funds[more]

    Komfie Manalo, Opalesque Asia: As institutional investors’ needs continue to evolve, they are increasingly looking to work with larger hedge fund managers and intermediaries who can meet their appetite for comprehensive portfolio solutions, said Barry Bausano, co-head of Global Prime Finance at D