Japan’s GPIF Earns ¥1.7 Trillion for Year, Turns Loss in Quarter

Japan’s Government Pension Investment Fund reported an investment profit of ¥1.7334 trillion for the fiscal year ended 31 March 2025, equal to a 0.71% return on its ¥249.8 trillion portfolio. The result, driven largely by a 6.62% gain in foreign equities, extended the world’s largest pension fund’s run of annual gains to five years, although it was a fraction of the record ¥45 trillion earned in the previous year. Rising domestic interest rates weighed on fixed-income holdings, leaving domestic bonds down 4.47% for the year. As of end-March, GPIF’s portfolio remained broadly balanced within its strategic bands, comprising 27.64% domestic bonds, 24.37% foreign bonds, 23.94% domestic stocks and 24.05% foreign stocks. Cumulative investment income since the fund began independent operations in 2001 reached ¥155.5 trillion. Market turbulence late in the year erased some gains. In the January–March quarter the fund booked an ¥8.8 trillion loss, a –3.41% return, as a weaker dollar cut the value of overseas securities and domestic assets fell. During the quarter domestic equities declined 3.5%, foreign equities 5.98%, while Japanese and foreign bonds lost 2.2% and 2.01% respectively.