The world's biggest pension fund made $339 billion in a single year as its investments returned a record 25%
- Japan's Government Pension Investment Fund - the world's biggest pension fund - returned a record 25% for the 12 months ended March 31.
- That yielded a gain of 37.8 trillion yen ($339 billion).
- Overseas stocks were the biggest contributor to the fund's increase, returning 59.4% over the period, according to Bloomberg.
Japan's Government Pension Investment Fund - the world's biggest pension fund - reaped in record returns for the 12 months ended March 31, Bloomberg first reported.
The GPIF took in a 25% return, or 37.8 trillion yen ($339 billion), over the period. That marked a record for the fund dating back to its inception in 2001. It was also the first time in seven years that the fund beat its benchmark.
Overseas stocks were the biggest positive driver, returning 59.4%, while domestic equities climbed 41.6%. Overseas debt rose 7.1%, while Japanese debt lost 0.7%, Bloomberg found.
GPIF President Masataka Miyazono did warn, however, that the robust stock-market gains enjoyed by the fund are unsustainable and benefited from temporary tailwinds, according to Bloomberg. Miyazono, who took the helm in April 2020, has never experienced a negative quarter even during the pandemic rout.
For the fund's last quarter ending in March, the fund returned 5.7%. By comparison, Japanese stocks returned 9.3%, and foreign stocks saw a 12% gain.
To diversify further, GPIF has been known to plow cash into environmental, social, and governance investments especially under its former leadership. Miyazono, for his part, kept mum as to how much he is looking to focus on this.
"We're not going to rapidly increase our position, and nor are we going to be extremely cautious," Miyazono told Bloomberg, referring to ESG investments. "We invest over the long term, and I think you'll see an impact over the long term."