Markets
Japan pension fund gains US$39b as stocks climb
Bloomberg | 03 Nov 2017 00:30

THE world’s biggest pension fund posted its fifth-straight quarterly gain – the longest run in more than two years – as global stocks advanced to new highs and weakness in the yen helped boost the value of overseas investments.

Japan’s Government Pension Investment Fund (GPIF) returned 3% or ¥4.5 tril (RM166.8 bil) in the three months ended Sept 30, increasing assets to a record ¥156.8 tril, it said in Tokyo on Nov 2. Domestic equities added ¥1.8 tril as the value of foreign equities increased by ¥2 tril, particularly boosted by the euro’s strength.

Prospects for higher corporate earnings have driven the Topix index to the highest in more than a decade, while US stock benchmarks climbed to records on confidence the world’s largest economy will sustain its growth. GPIF’s string of gains follows a series of losses after it overhauled its strategy in 2014 to buy more shares and cut debt.