TOKYO Japan's Government Investment Pension Fund (GPIF) posted on Friday an investment gain of ¥21.4 trillion (US$133.3 billion) in January-March, a record in yen terms, though it lost its position as the world's biggest pension fund to Norway's.

The fund gained 9.52% for the quarter, raising its total assets to ¥246 trillion, it said in its 2023 annual report, as equities rallied strongly in Japan and globally.

The fund's performance is closely watched by global financial markets due to its colossal size.

The GPIF fund posted an annual gain of ¥45.4 trillion in the 12 months to the end of March 2024, boosted by a stronger-than-expected US economy and increasing expectations of lower interest rates in major western economies, the report said.

The weakening yen also bolstered the value in yen terms of its international holdings, GPIF president Masataka Miyazono told a press briefing on Friday.

As of end-March, Japanese bonds accounted for 26.95% of its portfolio and foreign bonds accounted for 23.86%. Foreign equities accounted for 24.86% and domestic equities 24.33%.

However, the slumping yen has pushed the GPIF off its spot as the largest pension fund in the world in dollar terms, to be supplanted by Norway's Government Pension Fund Global.

The yen fell 6.6% against the dollar from January to March.

Miyazono told reporters he hoped the GPIF would be known as the world's best managed fund rather than the largest in terms of assets.

The fund's Japanese stock portfolio gained 18.2% in the January-March quarter while its foreign stock portfolio grew 15.8%.

Over the same period, Japan's Nikkei stock average gained 20.6% and the S&P 500 rose 10.2%.

The fund's foreign bond portfolio grew 5.4% but its Japanese bond portfolio fell 0.6%.

  - Reuters