Photo: REUTERS file

Government Pension Investment Fund posts ¥7.4 tril profit in third-quarter


Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, has reported a profit of 7.4 trillion yen in the third quarter, as both domestic and foreign stock markets rallied.

The GPIF, which managed 169 trillion yen of assets as of end-December, said its return on overall assets was 4.6% over the October-December period.

Its Japanese stock portfolio achieved an 8.6% return and the foreign stock portfolio earned 9.7%.

The fund halted disclosing the amount and ratio of investments in different asset classes from the second quarter, as it aimed to avoid affecting the market with such details ahead of a planned portfolio review.

“Such disclosure may cause various speculations in the market. That is not good for the market as well as for us,” President Norihiro Takahashi told reporters.

The new portfolio is due to be finalised before the new fiscal year begins in April.

In 2014, GPIF made a historic shift by cutting its reliance on domestic bonds and increasing weightings of riskier assets in response to Prime Minister Shinzo Abe’s push to promote a risk-taking investment approach.

Given the ultra-low interest rate environment in Japan, the fund has recently retreated from unprofitable domestic bonds and pushed into foreign assets.

© (c) Copyright Thomson Reuters 2020.

©2020 GPlusMedia Inc.

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Who gets the profits? Government, private? LDP?

3 ( +4 / -1 )

I assume the fund retains the profits. So ultimately they are for the benefit of pensioners.

1 ( +1 / -0 )

Profits from threatening people to pay otherwise have their assets taken. It’s such a scam

3 ( +5 / -2 )

As the pool of people who are owed a pension die off after a lifetime of payments, the government actively pushing out the retirement age reducing the pension or not increasing it, as cost of living rises of course they claim a profit. Extortion! you sign on pay a substantial amount over your working life then have the minister of finance say hurry up and die, eat cup noddles and work untill your 70?

4 ( +4 / -0 )

Markets go up and down.

2 ( +2 / -0 )

Hey, my kyousai nenkin was garnished 50% for the Ex, but the Ex will get her own pension...does she get my 50% and 100% of her own?

I have seriously looked and investigated this and cannot get an answer.

I think any profits made should be handed over to all the guys that lost 50% of their pensions.

By the way retirement rocks. Lots of free time for studying, surfing, going out to eat with the wife and lots of travel all over Asia.

Everyone should have that right for retirement. Give the profits back to us!!!!

-1 ( +2 / -3 )


The division does not apply to the base portion of the pension. It applies only to the kosei nenkin portion (for salaried workers) or the kyosai nenkin portion (for teachers and public servants). If the period of marriage is short, the amount the housewife will receive will decrease accordingly.

2 ( +2 / -0 )

Hi Zichi. That part I know already. Kakyunenkin, and Rourei as well.

I still want to know if I get portions back if her own nenkin ends up paying more? Sort of like in the states when one spouse dies...the higher SS gets awarded.

The base portion actually is not a pension per say. It is a given socialism kind of thing. I don't think it is considered a pension even for tax purposes.

0 ( +1 / -1 )

Have they actually realized the profits or is it just on paper, to be wiped out when the stock market crashes next time?

1 ( +1 / -0 )

Good Point Kitty. Similar issue as Warren and Bernie wanting to tax the billionaires. Do you balance it from year to year or do you keep taxing it over and over again yearly?

1 ( +1 / -0 )

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