The Government Pension Investment Fund (GPIF) reported on pension reserve fund investment performance for the first quarter of fiscal 2025 (April-June period).
This investment report published on August 1, 2025, comprehensively summarizes the investment performance of pension reserve funds managed and invested by GPIF for the first quarter of fiscal 2025. Comprehensive analysis has been conducted on investment results reflecting domestic and international stock and bond market trends, and implementation status of asset allocation strategies.
Investment Performance Overview
Pension reserve fund investment asset amounts for the first quarter of fiscal 2025 fluctuated from the previous quarter-end due to market environment changes. Investment performance and benchmark comparison results for each of the four basic asset classes - domestic stocks, foreign stocks, domestic bonds, and foreign bonds - are reported in detail.
Particularly notable is the widening return rate disparity among asset classes due to influences of global monetary policy changes and geopolitical risks. Yen appreciation and depreciation exchange rate fluctuations significantly impacted yen-converted returns of foreign assets, with currency hedging strategy effects also analyzed.
Asset Allocation and Basic Portfolio
GPIF maintains a basic portfolio of 25% each for domestic stocks, foreign stocks, domestic bonds, and foreign bonds from a long-term perspective. Detailed reports are provided on actual asset allocation ratios as of the first quarter-end of fiscal 2025, deviations from the basic portfolio, and rebalancing implementation status.
Additionally, ESG investment promotion status, balance between passive and active investment, and initiatives in alternative investments are mentioned as efforts toward investment diversification and sophistication.
Market Environment and Investment Environment Analysis
The first quarter of fiscal 2025 was significantly influenced by major country monetary policy trends, inflation rate transitions, and corporate performance changes on investment results. Particularly, US interest rate policy, Chinese economic trends, and European political situations became fluctuation factors in international financial markets, also affecting pension reserve fund investment.
Domestically, Bank of Japan monetary policy, government economic policy, and corporate capital investment trends influenced stock and bond market performance, with quantitative analysis conducted on these factors' impact on investment results.
Risk Management and Long-term Investment Strategy
GPIF emphasizes risk management from long-term perspectives to ensure pension system sustainability. During the first quarter of fiscal 2025, market risk measurement through VaR (Value at Risk), credit risk management, and liquidity risk monitoring continued to be implemented.
Additionally, responses to climate change risks, identification and management of new risks accompanying digitalization progress, and responses to increasing geopolitical risks are reported as measures addressing contemporary risk factors.
The article concludes that pension reserve fund investment continues to aim for both long-term stability and profitability, and will continue investment under appropriate risk management with the basic policy of contributing to stable retirement life for citizens.